**Summary:**
RBI/2015-2016/356 FMOD.MAOG. No.113/01.18.001/2015-16, dated April 5, 2016, announces a reduction in the Marginal Standing Facility (MSF) rate. The Reserve Bank of India (RBI) has decided to reduce the MSF rate by 75 basis points, from 7.75 percent to 7.00 percent, effective immediately. This directive applies to all Scheduled Commercial Banks, excluding Regional Rural Banks (RRBs). All other terms and conditions of the existing MSF scheme remain unchanged. M. Rajeshwar Rao, Chief General Manager, is the contact person for this announcement.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to here by its abbreviation RBI, which issued the notification.
Scheduled Commercial Banks: Refers to all commercial banks in India that are listed in the Second Schedule to the Reserve Bank of India Act, 1934, excluding Regional Rural Banks (RRBs).
Marginal Standing Facility: A facility under which scheduled commercial banks can borrow overnight funds from the Reserve Bank of India (RBI) against their government securities portfolio.
MSF rate: Marginal Standing Facility rate; the interest rate at which scheduled commercial banks can borrow funds overnight from the RBI.
M. Rajeshwar Rao: The Chief General Manager at the Reserve Bank of India, who signed the notification.
RBI/2015-2016/356
FMOD.MAOG. No.113 /01.18.001/2015-16 April 5, 2016
All Scheduled Commercial Banks (excluding RRBs)
Madam / Sir,
Marginal Standing Facility
As announced by the Governor today, it has been decided to reduce the Marginal Standing
Facility (MSF) rate by 75 basis points from 7.75 per cent to 7.00 percent with immediate effect.
All other terms and conditions of the current MSF scheme will remain unchanged.
Yours sincerely
(M. Rajeshwar Rao)
Chief General Manager