Marginal standing facility rate

E179213

The marginal standing facility rate is an overnight borrowing rate at which the Reserve Bank of India lends funds to commercial banks, serving as a tool to manage short-term liquidity and signal the upper bound of the interest rate corridor in its monetary policy framework.

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Label Occurrences
Marginal standing facility rate canonical 1

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Statements (41)

Predicate Object
instanceOf Monetary policy instrument
Policy interest rate
accessCondition Available against excess statutory liquidity ratio securities
accessType Standing facility
administeredBy Reserve Bank of India
affects Cost of marginal overnight funds for banks
appliesTo Scheduled commercial banks
borrowerType Commercial banks
Scheduled commercial banks excluding regional rural banks
collateralType Approved securities
Government securities
country India
currency Indian rupee
determinedBy Monetary Policy Committee recommendations and RBI decisions
domain Monetary policy
function Acts as a safety valve against unanticipated liquidity shocks
Provides a backstop borrowing option for banks
influences Call money market rates
Short-term interest rate structure in India
introducedBy Reserve Bank of India
introducedIn 2011
introducedUnder Monetary policy operating procedure reforms of 2011
legalBasis RBI Act and associated monetary policy regulations
linkedTo Policy repo rate
partOf Monetary policy of India
surface form: Liquidity adjustment facility framework of the Reserve Bank of India
policyRole Helps transmit monetary policy stance to the banking system
Influences short-term money market interest rates
purpose Manage short-term liquidity in the banking system
Provide overnight liquidity to banks
Signal the upper bound of the policy interest rate corridor
rateType Fixed interest rate
regulator Reserve Bank of India
relatedTo Liquidity adjustment facility
Repo rate
Standing deposit facility rate
roleInFramework Defines the ceiling of the RBI’s interest rate corridor
sector Banking
tenor Overnight
typicalPosition Above the policy repo rate
upperBoundOf Interest rate corridor of the RBI
usedFor Meeting overnight liquidity mismatches by banks

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Full triples — surface form annotated when it differs from this entity's canonical label.