RBI1 min read
Marginal Standing Facility
An emergency overnight borrowing window for scheduled commercial banks from the Reserve Bank of India, allowing them to borrow up to 2% of their NDTL at a rate higher than the repo rate (typically repo rate + 25 bps).
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Marginal Standing Facility in Indian corporate law?▼
An emergency overnight borrowing window for scheduled commercial banks from the Reserve Bank of India, allowing them to borrow up to 2% of their NDTL at a rate higher than the repo rate (typically repo rate + 25 bps).
Q2. Why is Marginal Standing Facility important for compliance?▼
Marginal Standing Facility is governed by the Reserve Bank of India under applicable banking and monetary policy frameworks. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Marginal Standing Facility?▼
Marginal Standing Facility is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with RBI regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to RBI:
RBI WMA Report 2026: ₹67,839 Crore Limit Recommended for States
Published: 29 September 2026
RBI Deputy Governor Dr. Poonam Gupta: India Weathered Every Global Shock at Once — And Came Out Structurally Stronger
Published: 23 September 2026
RBI Standardises InvIT and REIT Unit Valuation Across Banks and AIFIs — 2026 Amendment Directions
Published: 22 September 2026