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RBI opens LAF, MSF windows for regional rural banks

RBI has allowed regional rural banks (RRBs) to access the liquidity adjustment facility (LAF) and marginal standing facility (MSF) in order to facilitate better liquidity management for these lenders

twitter-logoPTI | December 4, 2020 | Updated 19:04 IST
RBI opens LAF, MSF windows for regional rural banks
The RBI left the policy repo rate unchanged at 4 per cent

Reserve Bank of India (RBI) on Friday allowed regional rural banks (RRBs) to access the liquidity adjustment facility (LAF), marginal standing facility (MSF) and call or notice money market, aimed at facilitating better liquidity management for these lenders.At present, RRBs are not permitted to access the liquidity windows of the RBI as well as the call or notice market.

"With a view to expanding participation in money market and to facilitate better liquidity management, RRBs will now be allowed to access LAF and MSF of the RBI, and also the call or notice money market," Governor Shaktikanta Das while announcing the monetary policy.

The RBI left the policy repo rate unchanged at 4 per cent. It also maintained an accommodative stance.

Also Read: RBI keeps repo rate unchanged; maintains 'accommodative' stance

Also Read: Sensex ends above 45K for first time, Nifty at record high as RBI raises GDP forecast

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