What is the difference between marginal standing facility and repo rate?
LAFMSFLiquidity adjustment facility, this is for short term Marginal standing facility, this is for long term Minimum bidding amount is 5 cr. 1 cr. All clients of RBI are eligible to bid. Only scheduled commercial banks can bid. Bank cannot sell Government security to RBI that is part of bank's SLR quota. bank can sell the Government security from its SLR quota to RBI. Bank can borrow any amount of money as long as it has the securities to sell. Bank can maximum borrow upto 2% of its NDTL. Suppose repo rate is "r%" current rate [29-07-2013] : 7.25%MSF lending rate is always (r+x)%current rate [29-07-2013] : 10.25%