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Under which of the following rates can scheduled commercial banks borrow funds overnight from the Reserve Bank of India?

  1. A
    Marginal Standing Facility
  2. B
    Cash Reserve Ratio
  3. C
    Bank Rate
  4. D
    Repo Rate

Solution & Step-by-step Explanation

Marginal Standing Facility (MSF) is a window for scheduled commercial banks to borrow overnight funds from the Reserve Bank of India (RBI) in an emergency situation when interbank liquidity dries up completely, by dipping into their Statutory Liquidity Ratio (SLR) portfolio.

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Under which of the following rates can scheduled commercial banks borrow funds overnight from the Reserve Bank of India?
A
Marginal Standing Facility
B
Cash Reserve Ratio
C
Bank Rate
D
Repo Rate

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