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Liquidity Management in the System
MSF — Marginal Standing Facility — Role in Corridor / Tenor / Rate / Mechanism?
Role in Corridor: Ceiling of the corridor; Tenor: Overnight; Rate / Mechanism: Repo + 25 bps = 5.50% (RBI MPC, June 2026). Bank's option after market hours; uses SLR-excess G-Secs as collateral.
What does LAF stand for in RBI's liquidity management framework?
Liquidity Adjustment Facility used by RBI to manage reserves.
Bank Rate — Role in Corridor / Tenor / Rate / Mechanism?
Role in Corridor: Penal/discount rate; numerically equal to MSF; Rate / Mechanism: 5.50% (RBI MPC, June 2026). Linked to MSF since 2012.
What is the current CRR rate effective from December 6, 2025?
CRR is currently 3.00% of Net Demand and Time Liabilities.
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