MonPolicy → Quant Tools → Rates → MSF (2011) Flashcards

1
Q

What does MSF stand for?

A

Marginal Standing Facility

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2
Q

What is the function of MSF?

A

RBI lends short-term loans to Scheduled Commercial Banks (SCB) & Regional Rural Banks (RRB) with their SLR-quota G-Sec as collaterals.

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3
Q

What is the relationship between MSF and Repo Rate?

A

MSF is higher than the Repo Rate. MSF = Repo% + 0.25%

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