Start learning 50% faster. Sign in now
• Option B is the Correct answer: • The Repo Rate is the (fixed) interest rate at which the RBI provides overnight liquidity up to a certain limit (0.25% of their NDTL) to banks against the collateral of government and other approved securities under the Liquidity Adjustment Facility (LAF). Repo is short form of "Repurchase Agreement". • Marginal Standing Facility (MSF) is a facility introduced in 2011, under which scheduled commercial banks can borrow additional amount of overnight money (over and above what is available to them through repo rate) from the Reserve Bank by dipping into their SLR portfolio up to a limit at a penal rate of interest. This provides a safety valve against unanticipated liquidity shocks to the banking system. The main difference between the Repo rate loans and the loans availed under the Marginal Standing Facility: When banks take loans from RBI at Repo rate, banks need to keep Govt. Securities with RBI, but this security is in addition to the requirement of SLR. Banks cannot keep SLR securities to avail loan from RBI at Repo Rate. But under MSF, banks can borrow money/cash from RBI by dipping into the SLR reserve. This means the banks can keep 3% of the SLR securities with RBI (i.e. the SLR can go down up to 3% below the normal SLR limit) and can borrow cash from RBI. MSF Rate = Repo Rate + 0.25%
How many male members are in the family?
Study the information carefully and answer the questions accordingly.
There are nine members in a family with four females and two married cou...
Find out the two signs to be interchanged in order to make the following equation correct.
8 + 7 x 6 / 16 – 8 = 48
Read the directions carefully and answer the following questions.
If,
‘X * Y’ means X is father of Y,
‘X # Y’ means X is...
How is J related to Q?
How is C related to S?
How is D related to W?
Pointing to a photograph, Kamayani said, "He is the son of my grandfather's only daughter." How is Kamayani related to the boy in the photograph?
Read the directions carefully and answer the following question.
L is the brother of Z. Z is mother of Q. B is sister of Q, who is the son of F...
How is V related to S?