Economics · Monetary Policy and RBI Instruments

The Marginal Standing Facility (MSF) allows scheduled commercial banks to borrow overnight funds from the RBI:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Without any limit at the prevailing Repo Rate
2In foreign currency for export and import trade financing
3From other commercial banks at market-determined call money rates
4Up to a specified limit at a rate higher than the repo rate against approved government securities✓

Correct answer

Up to a specified limit at a rate higher than the repo rate against approved government securities

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