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

a. MSF
b. Repo rate
c. Reverse repo
d. Bank rate

ANSWER: MSF
 
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.

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