RBI steps in with liquidity line for mutual funds
Injection of $6.6 billion comes as Franklin Templeton shuts down six funds
The Reserve Bank of India has launched a new liquidity facility for mutual funds, amid signs of intense pressures starting to spread across the industry.
The central bank unveiled the 500 billion rupee ($6.6 billion) facility today (April 27), as Franklin Templeton said it was halting withdrawals and would be closing down six of its riskier Indian debt funds, which it described as “yield-oriented”.
“This extraordinarily difficult decision to close six of our schemes… was taken as it was the
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