Solved UPSC CDS/OTA Question
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Q · RBI and Its PoliciesMedium · 45s
Which of the following is correct about the ‘Marginal Standing Facility (MSF)’?
TopicRBI and Its Policies
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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MSF allows scheduled banks to borrow overnight from the RBI against government securities.
Final Answer: Option A — It is a facility for banks to borrow overnight funds from the RBI against approved securities