Discussion

In context with Banking in India, what is the difference between liquidity adjustment facility – repo-rate and Marginal standing facility rate? 1. Under repo, banks can borrow up to 5% of net demand and time liabilities under MST, they can borrow up to no limit. 2. Under repo rate banks can borrow above SLR requirements, under MSF, banks can borrow within SLR requirements. Select the above correct statements.