Which of the following statement correctly describes the Marginal Standing Facility (MSF) rate? - Study24x7
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Which of the following statement correctly describes the Marginal Standing Facility (MSF) rate?

A

It refers to the rate at which the scheduled banks can borrow funds overnight from RBI against government securities.

B

It is the rate at which the RBI lends funds to commercial banks and other financial institutions for a period less than a year.

C

It refers to the official interest rate at which RBI will provide long term loans to the commercial banks and other financial institutions in India.

D

It refers to the minimum lending rate below which a bank is not permitted to lend.

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