Q. Under which of the following “banks can borrow overnight upto 1 per cent of their net demand and time liabilities (NDTL) from the RBI, at the interest rate 1 per cent (100 basis points) higher than the current repo rate”?
Answer: C
Notes:
Explanation: MSF is a new scheme announced by the RBI in its Monetary Policy, 2011–12 which came into effect from May, 2011.
Under this scheme, banks can borrow overnight upto 1 per cent of their net demand and time liabilities (NDTL) from the RBI, at the interest rate 1 per cent (100 basis points) higher than the current repo rate.
Source: Ramesh Singh
