Chidambaram Welcomes RBIs Special Liquidity Facility For Mutual Funds

Money & Banking

PTI New Delhi | Updated on April 27, 2020 Published on April 27, 2020

Former Finance Minister P Chidambaram on Monday lauded the RBI’s prompt action in announcing a ₹50,000 crore special liquidity facility for mutual funds.

The Reserve Bank of India on Monday announced a ₹50,000 crore special liquidity facility for mutual funds, days after Franklin Templeton Mutual Fund decided to close six debt schemes.

“I welcome the RBI’s announcement of a ₹50,000 crore special liquidity facility for Mutual Funds. I am glad that RBI has taken note of the concerns expressed two days ago and requesting prompt action,” the Congress leader said on Twitter.

Chidambaram had on Saturday expressed “grave concern” for investors over the matter and urged the government to act promptly to resolve the issue.

Franklin Templeton Mutual Fund voluntarily decided to wind up its six debt schemes citing redemption pressure and lack of liquidity in bond markets due to the coronavirus pandemic.

Published on April 27, 2020

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