The Reserve Bank of India in its press release dated 30th April 2020 has extended regulatory benefits to all banks irrespective of whether they avail funding from the Reserve Bank or deploy their own resources under special liquidity facility for mutual funds (SLF-MF) to ease liquidity strains on Mutual Funds.
The RBI has further stated that those banks meeting the liquidity requirements of MFs by extending loans and undertaking outright purchase of and/or repos against the collateral of investment-grade corporate bonds, commercial paper, debentures and certificates of deposit held by MFs, will be eligible to claim all the regulatory benefits available under the scheme.
The banks claiming the regulatory benefits would be required 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 Operations Department and to Department of Supervision on every Monday till the closure of the scheme.
Click here to read the Notification.
