Which of the following is/are the difference between Repo and MSF?
I- MSF is used only in emergencies.
II- MSF Rate is usually higher than Repo Rate.
III- Banks can pledge government securities from the SLR quota up to 1% under the MSF.
The difference between the MSF and the repo rate is that MSF is used only in emergencies. Another difference with the repo rate is that banks can pledge government securities from the SLR quota up to 1% under the MSF. Then, even if the SLR comes below 21.5%, banks need not pay any penalty under MSF.