RBI to inject Rs. 20,000 crore to help mutual funds tide over liquidity crisis

Mumbai, Oct 14 : The Reserve Bank of India (RBI) on Tuesday decided to inject Rs. 20,000 crore through short-term lending route to help the mutual funds meet their liquidity needs and overcome redemption pressure.

In a notification, the apex bank said that it has decided to conduct a special 14-day repo at nine per cent per annum for Rs. 20,000 crore.

RBI's decision will help the mutual fund industry to meet redemption pressure following the credit crisis in the financial sector.

ANI