FMD. No.65 /01.18.001/2011-12
December 21, 2011
All Scheduled Commercial Banks
Marginal Standing Facility – Scheme
Please refer to our Circular RBI/2010-11/515 dated May 9, 2011 on the captioned subject.
2. It has been decided to permit banks to avail themselves of funds from RBI on overnight basis, under Marginal Standing Facility (MSF), against their excess SLR holdings. Additionally, they can also avail themselves of funds, on overnight basis below the stipulated SLR, up to one per cent of their respective Net Demand and Time Liabilities outstanding at the end of second preceding fortnight. In the event the banks’ SLR holdings fall below the statutory requirement, banks will not have the obligation to seek a specific waiver for default in SLR compliance arising out of use of this facility in terms of notification issued under sub section (2A) of Section 24 of the Banking Regulation Act, 1949.
3. All other terms and conditions of the current MSF Scheme will remain unchanged.
4. Please acknowledge receipt.
Chief General Manager