RBI reduces the risk capital required by banks to set aside against investment in debt mutual funds

RBI has reduced risk capital that banks need to set aside against investment in debt mutual funds and ETFs, this move would improve liquidity in these funds. Investment in debt mutual fund/ETF for which full constituent debt details are available shall attract general market risk charge of 9 %. Debt mutual fund/ETF for which constituent debt details are not available shall continue to be treated on par with equity for computation of capital charge for market risk, said RBIRBI has reduced risk capital that banks need to set aside against investment in debt mutual funds and ETFs, this move would improve liquidity in these funds. Investment in debt mutual fund/ETF for which full constituent debt details are available shall attract general market risk charge of 9 %. Debt mutual fund/ETF for which constituent debt details are not available shall continue to be treated on par with equity for computation of capital charge for market risk, said RBItaxmann.com Latest Statutory HappeningsRead More

Leave a Reply