India Reserve Bank allows banks to borrow more from MSF

MUMBAI: The Reserve Bank of India on Wednesday allowed banks to avail funds from the central bank's marginal standing facility (MSF) against their excess holdings in government bonds and other approved securities to help tide over tight cash conditions.

Banks can avail funds on overnight basis below the stipulated SLR, up to one per cent of their respective net demand and time liabilities, the RBI said in a notification.

Currently, banks have to keep 24 percent of their deposits in government debt and approved securities under the SLR or statutory liquidity ratio.