The Reserve Bank of India vide its notification dated 4th December 2020 has decided that Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) to be extended to Scheduled RRBs in order to provide an additional avenue for liquidity management to Regional Rural Banks.
Further, only the following Scheduled RRBs will be eligible for the scheme
- Implemented Core Banking Solution (CBS)
- There is a minimum CRAR of nine per cent and
- Fully compliant with the terms and conditions for availing LAF and MSF issued by Financial Markets Operations Department (FMOD), Reserve Bank of India.
The names of RRBs which meet the eligibility norms to participate in LAF and MSF (Positive List) and of those RRBs found ineligible (Negative List) will be intimated to the banks concerned. The eligibility status of the banks will be reviewed on an ongoing basis.
