Banks borrow Rs 247.5 bn from RBI via MSF on Sept 14

From the Reserve Bank of India’s (RBI) marginal standing facility (MSF) window, banks in India borrowed Rs 247.50 billion on September 14, when the central bank offered the special funding window due to the cash crunch generated by advance tax outflows.

Media reports say that borrowing under the MSF had soared to Rs 1.17 trillion on September 13. The RBI had raised the MSF rate by 200 basis points to 10.25 per cent and also imposed restrictions on daily borrowings by banks under its repo window in July. Banks usually tap the MSF rate during acute cash tightness.