Reserve bank of India announced reducing Marginal standing facility by 50 basis points from 9.5% to 9 percent. This will increase the liquidility in the market. RBI issued a note regaring changing in MSF. Full note is as under.
As announced today, it has been decided to reduce the Marginal Standing Facility (MSF) rate by 50 basis points from 9.50 per cent to 9.00 per cent with immediate effect.
2. All other terms and conditions of the current MSF scheme will remain unchanged.
3. Please acknowledge receipt.