He added that the RBI also extended its access to the Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) to Scheduled State Co-operative Banks, complying with the eligibility ...
The central bank follows a “corridor” liquidity management system ... then banks borrow funds from the RBI under LAF. If banks are net borrowers under LAF, the system liquidity can be ...
The RBI has however intervened heavily in USD ... Overnight call rates have consistently fixed above the upper end of LAF corridor i.e. MSF at 6.75%. Considering the disappointing Q2 GDP print ...