What is Marginal Standing Facility Rate

By | January 29, 2018

#Daily_One_Banking_Term
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➡ Meaning of Marginal Standing Facility Rate :-

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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