Marginal standing facility rate

E179213

The marginal standing facility rate is an overnight borrowing rate at which the Reserve Bank of India lends funds to commercial banks, serving as a tool to manage short-term liquidity and signal the upper bound of the interest rate corridor in its monetary policy framework.

All labels observed (1)

Label Occurrences
Marginal standing facility rate canonical 1

How this entity was disambiguated

Statements (41)

Predicate Object
instanceOf Monetary policy instrument ⓘ
Policy interest rate ⓘ
accessCondition Available against excess statutory liquidity ratio securities ⓘ
accessType Standing facility ⓘ
administeredBy Reserve Bank of India ⓘ
affects Cost of marginal overnight funds for banks ⓘ
appliesTo Scheduled commercial banks ⓘ
borrowerType Commercial banks ⓘ
Scheduled commercial banks excluding regional rural banks ⓘ
collateralType Approved securities ⓘ
Government securities ⓘ
country India ⓘ
currency Indian rupee ⓘ
determinedBy Monetary Policy Committee recommendations and RBI decisions ⓘ
domain Monetary policy ⓘ
function Acts as a safety valve against unanticipated liquidity shocks ⓘ
Provides a backstop borrowing option for banks ⓘ
influences Call money market rates ⓘ
Short-term interest rate structure in India ⓘ
introducedBy Reserve Bank of India ⓘ
introducedIn 2011 ⓘ
introducedUnder Monetary policy operating procedure reforms of 2011 ⓘ
legalBasis RBI Act and associated monetary policy regulations ⓘ
linkedTo Policy repo rate ⓘ
partOf Liquidity adjustment facility framework of the Reserve Bank of India ⓘ
policyRole Helps transmit monetary policy stance to the banking system ⓘ
Influences short-term money market interest rates ⓘ
purpose Manage short-term liquidity in the banking system ⓘ
Provide overnight liquidity to banks ⓘ
Signal the upper bound of the policy interest rate corridor ⓘ
rateType Fixed interest rate ⓘ
regulator Reserve Bank of India ⓘ
relatedTo Liquidity adjustment facility ⓘ
Repo rate ⓘ
Standing deposit facility rate ⓘ
roleInFramework Defines the ceiling of the RBI’s interest rate corridor ⓘ
sector Banking ⓘ
tenor Overnight ⓘ
typicalPosition Above the policy repo rate ⓘ
upperBoundOf Interest rate corridor of the RBI ⓘ
usedFor Meeting overnight liquidity mismatches by banks ⓘ

How these facts were elicited

Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.