Banks borrow Rs 2,000 crore from RBI under mutual fund liquidity window

The special repo window, under which banks can borrow up to 90 days to extend loans or buy debt papers of MFs, remains open till May 11. The total amount banks can borrow is Rs 50,000 cr

Banks have borrowed Rs 2,000 crore under the liquidity window opened for mutual funds on Monday, data released by the Reserve Bank of India (RBI) on Tuesday showed.

The special repo window, under which banks can borrow up to 90 days to give loans or buy debt papers of mutual funds, remains open till May 11. The total amount banks can borrow is Rs 50,000 crore.

Banks can bid under the facility on any working day. While there are still many days to go, the initial low response may suggest that the mutual fund industry has not yet faced redemption pressure, as