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Marginal Standing Facility

Marginal Standing Facility :

To borrow funds through this window, banks have to pay interest at a rate 100 bps higher than the repo rate. Banks are allowed to use MSF only after exhausting the excess statutory liquidity ratio (SLR) of their net demand and time liabilities. Banks keep excess SLR to pledge securities for funds from the central bank or the overnight market to meet their product needs.

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