Rs 50,000-Crore special liquidity facility for mutual funds announced by RBI
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The Reserve Bank of India (RBI) on Monday announced a special liquidity facility worth Rs 50,000 crore for mutual funds, in a bid to lift investors' confidence days after US-based Franklin Templeton wound up six of its India funds. The RBI said liquidity strains have "intensified in the wake of redemption pressures related to closure of some debt MFs (mutual funds) and potential contagious effects therefrom".