What does MSF stand for ?

Options

A. Mutual Secure Finance
B. Marginal Standing Facility
C. Minimum Structured Finance
D. Material Securitized Fund

Answer

b

Explanation

Marginal Standing facilities is the rate at which banks borrow funds overnight from the Reserve Bank of India (RBI against approved government securities. This came into effect in May 2011. Under the Marginal Standing facilities (MSF), currently banks avail funds from the RBI on over-night basis against their excess Statutory Liquidity Ratio (SLR) holdings. Additionally, they can also avail funds on overnight basis below the stipulated SLR up to 2.5% of their respective Net Demand and TIme Liabilities (NDTL) outstanding nat the end of second preceding fortnight.