Do you know what is Marginal Standing Facility? To provide - TopicsExpress



          

Do you know what is Marginal Standing Facility? To provide greater liquidity cushion to the banks,Marginal Standing Facility scheme announced on 03rd May, 2011 by RBI in its Monetary Policy that it will soon be introducing . Later on RBI announced that MSF scheme has become effective from 09th May, 2011. Under this scheme, Banks will be able to borrow upto 1% of their respective Net Demand and Time Liabilities". On 17th April 2012 RBI has raised the borrowing limit under the MSF from 1 per cent to 2 per cent of their NDTL outstanding at the end of the second preceding fortnight. However, the rate of interest on the amount accessed from this facility is fixed at 300 basis points (i.e. 3%) above the repo rate with effect from 15/07/2013.
Posted on: Sun, 08 Sep 2013 10:21:32 +0000

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