As a contingency measure, the Reserve Bank of India (RBI) has decided to conduct a special 3-day repo at an interest rate of 10.25 per cent for a notified amount of Rs. 25,000 crore with a view to enabling banks to meet the liquidity requirements of mutual funds.
"Details of the facility are being announced separately. This facility will be made available for a temporary period until further notice," the RBI has stated in a release.
The window has been kept open to help banks facilitate the liquidity needs of the mutual fund industry.
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