RBI reduced the Marginal Standing Facility (MSF) Rate to 9% from

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	9.50%
B	9.30%
C	9.80%
D	0.099

Explanation:

Detailed explanation-1: -2. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 6.25 per cent and 6.75 per cent respectively, with immediate effect. 3. All other terms and conditions of the extant LAF Scheme will remain unchanged.

Detailed explanation-2: -Previously on 30 September 2022, the RBI increased the repo rate by 50 basis points, from 5.40% to 5.90%. The Marginal Standing Facility (MSF) Rate was also increased from 6.15% to 6.50%.

Detailed explanation-3: -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-4: -Definition: Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.

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