Rs 25,000 crore window opened by RBI to help Mutual Fund industry
A special borrowing window of Rs 25,000 crore was opened by the RBI to help mutual funds industry over liquidity problems. The crisis occurred due to different merger schemes in the industry and profit booking. This facility will be made available for a brief period only.
A special 3-day REPO auction was decided to be conducted by RBI under which banks can raise funds upto to Rs 25,000 crore at 10.25 per cent for on lending to the mutual funds. In 2012-13 the mutual fund industry lost more than 36 lakh investors. During the last 3 financial years, the mutual fund industry had lost over 15 lakh new investor accounts. In April-June 2013-14 as per the latest SEBI data, Mutual Funds lost 10 lakh investors in terms of individual accounts or folios.
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Month: Current Affairs - July, 2013