ICICI Bank Ltd Interview Question:

On which rate bases, overnight money is needed by bank from RBI?

a. MSF
b. Repo rate
c. Reverse repo
d. Bank rate

Submitted by: Muhammad

MSF
Explanation:
Marginal Standing Facility (MSF) has been introduced by RBI with the main aim of reducing volatility in the overnight lending rates in the inter-bank market and to enable smooth monetary transmission in the financial system.
Submitted by: Muhammad