How Do Loans Get Affected by the Marginal Standing Facility?
Rameshkumar0116 Oct, 2024Finance
In other words, borrowings under the Marginal Standing Facility are ideal only for handling short-term liquidity issues. Lastly, the rate of interest that the Reserve Bank of India charges when lending funds to scheduled commercial banks under the Marginal Standing Facility is known as the Marginal Standing Facility Rate and this rate is always higher than the Repo Rate.
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