BANKING GENERAL KNOWLEDGE
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Question
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RBI on October, 7th 2013, has reduced Marginal Standing Facility (MSF) rate from 9.5% to 9% to improve liquidity in the system. What is MSF?
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MSF rate is the rate at which banks lodge funds overnight with RBI buying approved government securities.
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MSF rate is the rate at which banks borrow funds overnight from other banks against approved government securities.
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MSF rate is the rate at which banks borrow funds overnight from RBI against approved government securities.
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MSF rate is the minimum rate at which banks lend to the borrowers.
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Explanation:
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