Bank Rate
Bank rate is the rate of interest which is levied on Long Term loans and Advances taken by commercial banks from RBI.
MSF Rate
MSF (Marginal Standing Facility Rate) is the rate at which banks can borrow overnight from RBI.
This was introduced in the monetary policy of RBI for the year 2011-2012.
Banks can borrow funds through MSF when there is a considerable shortfall of liquidity. This measure has been introduced by RBI to regulate short-term asset liability
mismatches more effectively.
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