What is MSF rate?

The interest rate at which the Reserve Bank of India (RBI) lends money to scheduled commercial banks which are facing heavy shortage of liquidity is known as Marginal Standing Facility (MSF) rate.You can read about The Reserve Bank of India: Functions and Composition in the given link.

Further readings:

  1. Non Performing Assets (NPA) – Facts for UPSC GS-III
  2. Topic-Wise GS 3 Questions for UPSC Mains

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