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The MSF rate sits how far above the policy repo rate?
A5 basis points
B25 basis points
C75 basis points
D150 basis points
Answer & Solution
Correct answer: B. 25 basis points
1. The MSF is the ceiling of the corridor.
2. The corridor is symmetric around the repo rate.
3. So the MSF rate is 25 basis points above.
_Source: Reserve Bank of India, Monetary Policy function overview (rbi.org.in)._
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