RBI Extends Regulatory Benefits under SLF-MF Scheme

Published on May 01, 2020
Current Context: The Reserve Bank of India (RBI) extended the regulatory benefits announced under the special liquidity facility for mutual funds (SLF-MF) scheme to all banks, irrespective of whether they avail funding from RBI or deploy their own resources under the scheme.
RBI Extends Regulatory Benefits under SLF-MF Scheme
  • Any bank that meets with the liquidity requirements of mutual funds by extending loans and undertaking outright purchase or repos against the collateral of investment-grade corporate bonds, commercial papers, debentures and certificates of deposit held by mutual funds will be eligible to claim all regulatory benefits.
  • To avail this, the bank is supposed to submit a weekly statement containing consolidated information on entity-wise and instrument-wise loans and advances extended or investment made to eligible entities to financial markets and the Department of Supervision on every Monday till the closure of the scheme.
  • This move of RBI has intensified the redemption pressures related to the closure of some debt mutual funds and potential contagious effects.

Static Part:

  • Headquarters of RBI– Mumbai, Maharashtra
  • Governor of RBI – Shaktikanta Das
  • Deputy Governors of RBI– Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra.

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