Many times we read in newspapers that the RBI has revised certain rates/ratios under LAF. What is the full form of LAF?

Legal Adjustment Facility

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Liquidity Adjustment Facility

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Longterm Achievement Facility

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Legal Adjustment Formality

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Solution

The correct option is C Liquidity Adjustment Facility
LAF stands for Liquidity Adjustment Facility. In recent times, the RBI has revised certain rates/ratios under LAF. It is a monetary policy through which a bank can borrow money by repurchase agreements.

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What is the current Policy Repo Rate under the liquidity adjustment facility (LAF)?

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