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Banks can borrow overnight from RBI by dipping into their SLR up to 2 percent under the:
AMSF
BSDF
COMO
DMSS
Answer & Solution
Correct answer: A. MSF
1. This is a penal rate facility.
2. It is a safety valve for liquidity shocks.
3. It is the Marginal Standing Facility.
_Source: Reserve Bank of India, Monetary Policy function overview (rbi.org.in)._
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