Features of MSF2:
- Eligibility: All Scheduled Commercial Banks having Current Account and SGL Account with Reserve Bank, will be eligible to participate in the MSF Scheme.
- Tenor and Amount: Under the facility, the eligible entities can avail overnight, up to one per cent of their respective Net Demand and Time Liabilities (NDTL) outstanding at the end of the second preceding fortnight.
- Timing: The Facility will be available on all working days in Mumbai, excluding Saturdays.
- Rate of Interest: The rate of interest on amount availed under this facility will be 100 basis points (originally set) above the LAF repo rate, or as decided by the Reserve Bank from time to time (reduced by the RBI later).
- Discretion to Reserve Bank: The Reserve Bank will reserve the right to accept or reject partially or fully, the request for funds under this facility.
- Mechanics of operations: The requests will be submitted electronically in the Negotiated Dealing System (NDS). Eligible members facing genuine system problem on any specific day, may submit physical requests in sealed cover in the box provided in the Mumbai Office.
- Minimum request size: Requests will be received for a minimum amount of one crore and in multiples of one crore thereafter.
- Eligible Securities: MSF will be undertaken in all SLR-eligible transferable Government of India (GoI) dated Securities/Treasury Bills and State Development Loans (SDL).