InvestorQ : What has been the progress on the mutual fund window that the RBI had opened after the Templeton case of shutting down 6 funds?
Dhwani Mehta made post

What has been the progress on the mutual fund window that the RBI had opened after the Templeton case of shutting down 6 funds?

Answer
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Khushi Patel answered.
5 months ago


It is now nearly 4 days since the RBI launched its special SLF-MF window but Indian banks have just borrowed Rs.2,000 crore from the window. You will recollect that the RBI opened the window to disburse Rs.50,000 crore by 11 May to banks to on-lend to mutual funds. The SLF-MF window was launched by the RBI specifically for the benefit of mutual funds after Franklin Templeton summarily wound up six of its funds with combined AUM of Rs.30,500 crore . Templeton had cited a combination of default risk in the portfolio and redemption pressures. However, most mutual funds are wary of such borrowings as they further reduce the NAV available to investors. Also banks do not have too much appetite for risk at this point of time.