Question
Which of the following is a window for the banks to
borrow from RBI in an emergency when inter-bank liquidity dries up completely.Solution
Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency when inter-bank liquidity dries up completely. The Marginal standing facility is a scheme launched by RBI while reforming the monetary policy in 2011-12.
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