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Marginal Standing Facility (MSF) rate is
Costlier than repo rate
Cheaper than repo rate
Same as repo rate
None of the above
First option is correct. MSF rate is costlier than repo rate. Marginal Standing Facility is a new Liquidity Adjustment Facility (LAF) window created by Reserve Bank of India in its credit policy of May 2011. MSF is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities.
By: Cammy Garg ProfileResourcesReport error
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