The 'Marginal Standing Facility' (MSF) is a window for scheduled commercial banks to borrow overnight funds from the RBI against government securities at a rate:
The 'Marginal Standing Facility' (MSF) is a window for scheduled commercial banks to borrow overnight funds from the RBI against government securities at a rate:
Answer: Option C
MSF is a facility under which scheduled commercial banks can borrow an additional amount of overnight money from the RBI 4 at a penal interest rate, which is usually above the repo rate.