Definition of MSF- Rate at which overnight money is needed by bank from RBI
Q. On which rate bases, overnight money is needed by bank from RBI?- Published on 20 Jul 15
b. Repo rate
c. Reverse repo
d. Bank rate
Marginal Standing Facility (MSF) has been introduced by RBI with the main aim of reducing volatility in the overnight lending rates in the inter-bank market and to enable smooth monetary transmission in the financial system.