MUMBAI, July 17 (Reuters) - The Reserve Bank of India said on Wednesday the first three-day special repo for mutual funds would be on July 18, then on July 23 and subsequently at an interval of three days excluding Saturdays and holidays.
The RBI had announced earlier in the day it will offer up to 250 billion rupees to banks for funding mutual funds through a special repo window which will be over and above the daily repo amount capped at 750 billion rupees.
The RBI also asked banks to "strictly" ensure that these funds are exclusively used to meet the funds' requirements.
The central bank also waived the penal interest in case of any shortfall in statutory liquidity ratio of up to 0.5 percent of deposits by banks under this special repo window. (Reporting by Suvashree Dey Choudhury; Editing by Subhranshu Sahu)