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RBI opens repo window with Rs 25k cr for mutual funds

RBI opens repo window with Rs 25k cr for mutual funds

The Reserve Bank of India on July 17 created a special Rs 25,000-crore borrowing facility for mutual funds (MFs) to meet their liquidity requirements. This is being done to manage the heavy redemptions that are expected due to sudden losses in debt funds following the tightening of liquidity and the hike in overnight lending rates. This is the second time the central bank has opened such a window for MFs.