Marginal Standing Facility (MSF) – Extension of Relaxation extended till March 31, 2021

The Reserve Bank of India has extended the timeline for which banks can avail funds under the marginal standing facility (MSF) at the rate of 3% of its NDTL till March 31, 2021.
Normally, banks are allowed to avail maximum funds under MSF from RBI at 2% of its net demand and time liabilities (NDTL). After COVID-19, RBI had allowed banks to dip 1% extra to this limit, that is now banks could borrow money from RBI under MSF, at 3%.