The terms ‘ Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to
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A.
Banking operations
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B.
Communication networking
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C.
Military strategies
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D.
Supply and demand of agricultural products.
Correct Answer:
A. Banking operations
Explanation:
The Marginal Standing Facility (MSF) was introduced by the RBI on May 9, 2011, allowing commercial banks to secure overnight loans. Under this arrangement, banks are permitted to borrow an amount equivalent to 1% of their Net Demand and Time Liabilities (NDTL), representing a portion of their total deposits and other financial obligations.
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