The Reserve Bank of India vide its press release dated 28th September 2020 has decided to continue with the marginal standing facility relaxation for a further period of six months up to 31st March 2021 with a view to provide comfort to banks on their liquidity requirements and also to enable to continue to meet LCR requirements.
The RBI, as a temporary measure, earlier increased the borrowing limit for scheduled banks under the marginal standing facility scheme from 2% to 3% of their Net Demand and Time Liabilities with effect from March 27, 2020 and was extended on 26th June, 2020 up to September 30, 2020, in view of disruptions imposed by COVID-19.
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