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RBI announces 50,000crore Special Liquidity Facility for Mutual Funds

RBI announces 50,000crore Special Liquidity Facility for Mutual Funds Part of: GS-III- Economy-Capital markets (PT-MAINS-PERSONALITY TEST) The Reserve Bank of India announced a Special Liquidity Facility for Mutual Funds (SLF-MF) of 50,000 crore rupees with a view to easing liquidity pressures on Mutual Funds. The RBI has stated that it remains vigilant and will take whatever steps are necessary to mitigate the economic impact of COVID-19 and preserve financial stability. Imp points

Zero Coupon Zero Principle Bonds

“A Bond is a fixed income instrument that represents a loan made by an investor to a borrower.” In simpler words, bond acts as a contract between the investor and the borrower. Mostly companies and government issue bonds and investors buy those bonds as a savings and security option.  These bonds have a maturity date and when once that is attained, the issuing company needs to pay back the amount to the investor along with a part of the profit. This kind of dealing with bonds

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