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.
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