RBI has extended special fixed rate 14-Day repo under Liquidity Adjustment Facility (LAF), which was announced and conducted on 14 October 2008. RBI conducted a special 14 day repo at 9% per annum against eligible securities for amount of Rs.20,000 crore in order to enable the banks to meet the liquidity requirements of mutual funds. While only Rs 3500 crore of this facility were utilised by the banks. Thus, the 14-day repo facility will now be conducted everyday until further notice up to a cumulative amount of Rs 20,000 crore for the same purpose to give relief mutual fund industry.
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