MonPolicy → Quant Tools → Rates → MSF (2011) Flashcards
1
Q
What does MSF stand for?
A
Marginal Standing Facility
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.
3
Q
What is the relationship between MSF and Repo Rate?
A
MSF is higher than the Repo Rate. MSF = Repo% + 0.25%