Marginal Standing Facility

RBI cuts MSF rate to 9% to encourage banks to lend more

The move, which comes ahead of the festive season, is likely to improve liquidity in the system and encourage banks to lend more to consumers.

RBI cuts MSF rate by 0.5% to improve liquidity

With the reduction in the MSF rate, the RBI also announced that the bank rate will be adjusted to 9 percent with immediate effect.

Raghuram Rajan's real tightrope walk is in bond market

The market is struggling with the restriction on banks' access to the LAF window for funds, which the RBI has, as part of its efforts to tighten liquidity and defend the rupee, capped at 0.5 percent of individual bank's deposit.

RBI measures may only provide short-term boost to rupee

Structural problems, the key reason for the rupee's weakness, remain unaddressed.