What is Marginal Standing Facility Rate meaning

By | November 19, 2017

#Daily_One_Banking_Term
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✔️ Marginal Standing Facility Rate (MSFR):

▪️MSF scheme has become effective from 09th May, 2011
launched by the RBI.

▪️Under this scheme, Banks will be able to borrow upto 1% of their respective Net Demand and Time Liabilities.

▪️The rate of interest on the amount accessed from this facility will be 100 basis points (i.e. 1%) above the repo rate.

▪️This scheme is likely to
reduce volatility in the overnight rates and improve monetary transmission.

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