RBI extends regulatory benefits under the SLF MF Scheme

May 06, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Reserve Bank of India (RBI) on April 30, 2020, has decided to extend the regulatory benefits under special liquidity facility for mutual funds (SLF-MF) to ease liquidity strains on Mutual Funds (MFs). RBI had received representations from banks regarding extension of benefits.

Therefore, it is decided that the regulatory benefits announced under the SLF-MF scheme will be extended to all banks, irrespective of whether they avail funding from the Reserve Bank or deploy their own resources.

The banks meeting the liquidity requirements of MFs will be eligible to claim all the regulatory benefits available under SLF-MF scheme without the need to avail back to back funding from the Reserve Bank under the SLF-MF.

The bank claiming the regulatory benefits 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 via email.


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