Economics · Economy
Which among the following is the CORRECT description of the Marginal Standing Facility (MSF) in India's monetary policy framework?
- 1A special credit line extended by RBI to systemically important banks during financial crises
- 2A long-term refinancing window for NBFCs at the Bank Rate
- 3An emergency overnight borrowing facility for banks at a rate above the Repo Rate✓
- 4A window for RBI to borrow from commercial banks overnight at a rate below the Repo Rate
Correct answer
An emergency overnight borrowing facility for banks at a rate above the Repo Rate
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