BANKING GENERAL KNOWLEDGE
Question
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As per the status on January 28, 2014 the Marginal Standing Facility (MSF) stands at
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8.50%
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8.75%
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9.00%
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9.25%
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Explanation:
Detailed explanation-1: -The current MSF rate or Marginal Standing Facility Rate in India is 4.25%. This is the rate at which the banks can pledge government securities for gaining liquidity in situations when the liquidity is dried up.
Detailed explanation-2: -What is MSF rate India? Currently, the MSF rate of borrowing is 6.25% p.a. which is 25 basis points or 0.25% higher than the Repo rate. Kickstart your UPSC 2023 preparation today!
Detailed explanation-3: -Generally, the MSF rate is 0.25% or 25 basis points more than the repo rate. Using this facility, all the scheduled banks under RBI can avail money in emergency situations up to 1% of their NDTL (net demand and time liabilities) or SLR securities.
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