The terms Marginal Standing Facility Rate and Net Demand and Time Liabilities, sometimes appearing i

Question

The terms Marginal Standing Facility Rate and Net Demand and Time Liabilities, sometimes appearing in news, are used in relation to

Accepted Answer

Marginal Standing Facility (MSF) came into effect from 9th May 2011. The MSF scheme is provided by the Reserve Bank of India (RBI) by which banks can borrow overnight up to 1 percent of their net demand and time liabilities (NDTL), which is 1 percent of the aggregate deposits and other liabilities of the banks.Source Citation:The HinduCurrent AffairsUma Kapila