Commodity Online
NEW DELHI : The 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 statement issued here by the RBI said it has decided to conduct a special 14-day repo at nine per cent per annum for Rs 20,000 crore Tuesday with a view to enabling banks to meet the liquidity requirement of mutual funds,"

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

Meanwhile, Finance Minister P Chidambaram while welcoming the decision by RBI said it was taken in view of the liquidity stress being faced by some mutual funds.