Equal treatment

Govt should not tax two forms of debt differently

The Reserve Bank of India (RBI) has responded to the crisis across the debt segment of the mutual fund industry by opening a special window to support bank lending. The window, which is open until May 11, will help debt funds with sound portfolios to tide over the current crisis of confidence. Banks can lend to debt mutual funds (MFs) under the special liquidity facility for them up to a limit of Rs 50,000 crore, with their offer of collateral, which may also be swapped back after 90 days. MFs, which can offer acceptable collateral, will now be able to