Media reports say that banks borrowed Rs 55,278 crore ($8.6 billion) from the Reserve Bank of India’s marginal standing facility (MSF) window on September 6 for four days, higher than the Rs 24,531 crore on Sept 5 for one day. Markets were closed on September 9 for a local holiday.
The apex bank 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.
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