The Reserve Bank of India vide its notification dated 5th February 2021 has extended the relaxation under the marginal standing facility (MSF) by six more months.
The RBI in its earlier notification dated 27th march 2020 has allowed banks to avail funds under the marginal standing facility by dipping into the Statutory Liquidity Ratio (SLR) up to an additional one percent of net demand and time liabilities (NDTL), i.e., cumulatively up to 3 percent of NDTL and this facility was initially available up to June 30, 2020.
However it was extended upto 31st March 2021, which will now be available for a further period of another six months, i.e. up to September 30, 2021 to provide comfort to banks on their liquidity requirements.
