Question
The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in the news, are used in relation to
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The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in the news, are used in relation to
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• Correct Answer: A
• MSF Rate is the RBI window for banks to borrow overnight funds in emergency liquidity situations.
• NDTL is the deposit base (demand + time liabilities minus inter-bank deposits) used to calculate SLR and CRR.
• Both are core concepts in banking operations and RBI monetary regulation.
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