RBI extends higher overnight borrowing facility of banks to September

The RBI, as a temporary measure, had increased the borrowing limit of scheduled banks under the marginal standing facility (MSF) scheme from 2 per cent to 3 per cent of their Net Demand and Time Liabilities (NDTL) — or deposits — from March 27, 2020.

The Reserve Bank has decided to extend the enhanced borrowing facility provided to the banks to meet their liquidity shortages till September 30 in the wake of the continuing lockdown and downturn in the economy.

The RBI, as a temporary measure, had increased the borrowing limit of scheduled banks under the marginal standing facility (MSF) scheme from 2 per cent to 3 per cent of their Net Demand and Time Liabilities (NDTL) — or deposits — from March 27, 2020.

This relaxation, which was granted till June 30, 2020, has now been extended till September 30.

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