RBI RELAXES TIME LIMIT ON LOANS TO MUTUAL FUNDS

RBI extended a facility under which mutual funds could borrow using short-term debt securities as
collateral for an unlimited period to help them meet cash requirements. Further, the RBI allowed banks to extend loans to mutual funds against the so-called certificates of deposits or buy back such securities issued by themselves for a period of 15 days. This facility has been extended for an unspecified period now.