Regulatory benefits for banks helping mutual fund industry, says RBI

The Reserve Bank of India (RBI) on Thursday said all banks that are meeting the liquidity requirements of mutual funds (MF), irrespective of whether they use the MF facility by the RBI, will get regulatory benefits. 

On April 27, the RBI had introduced the Rs 50,000-crore liquidity line for the MF industry and had said the liquidity support availed under the SLF-MF would be eligible to be classified as held to maturity (HTM), even in excess of 25 per cent of the total investment permitted to be included in that category.