RBI allows RRBs to access LAF, MSF windows
Mumbai: Reserve Bank of India (RBI) on Friday allowed regional rural banks (RRBs) to access the liquidity adjustment facility (LAF), marginal standing facility (MSF) and call or notice money market, aimed at facilitating
better liquidity management for these lenders.
At present, regional rural banks are not permitted to access the liquidity windows of the RBI as well as the call or notice market.
With a view to expanding participation in money market and to facilitate better liquidity management, RRBs will now be allowed to access LAF and MSF of the RBI, and also the call or notice money market, Governor Shaktikanta Das while announcing the monetary policy.
The RBI left the policy repo rate unchanged at 4 per cent. It also maintained an accommodative stance.