Thread by @Sanju_Verma_

RBI has announced Rs 50000 Cr #SpecialLiquidityFacility for #mutualfunds,to ease redemption pressures

#RBI will conduct #Repo operations of 90 days tenor at fixed repo rate

This Special Facility is on-tap,open-ended&will particularly help #DebtSchemes of MFs,witnessing outflows

#SpecialLiquidityFacility for #mutualfunds is available from today,April 27,2020 till May 11, 2020,or up to utilization of allocated amount of Rs 50000Cr whichever is earlier

@narendramodi govt's calibrated approach to calm down frayed nerves,is timely&noteworthy

#coronavirus

Funds availed under this facility shall be used by banks solely for meeting #liquidity requirements of #mutualfunds by 👇

Extending loans

Outright purchase of #Repos

Or against collateral of corporate bonds,commercial papers, debentures&certificate of deposits,held by #MFs👍

Support availed under #SpecialLiquidityFacility would be classified as held to maturity(HTM) even in excess of 25% of total investment permitted,to be included in #HTM portfolio

Exposure under this facility will not be reckoned under Large Exposure Framework(LEF),which is a good

* good step.

Rs 50,000 Cr Special Liquidity facility for #mutualfunds,by #RBI,is not the 1st step

Dont forget,on 27th March 2020,RBI allowed Rs 1 lakh Cr of #TLTROs,to be invested in corporate bonds&CPs

Again,on 17thApril,RBI stepped in with Rs 50,000 Cr of TLTROs,for NBFCs&MFIs

#Covid_19