will be eligible for the intraday facility, while the limit for such a facility would be set by the RBI
from time to time, it said in a statement.
However, “the outstanding drawing at the end of the day under the LS (liquidity support) facility will be automatically converted into borrowing under the MSF”.
The MSF is done at a 25-basis-point higher spread than regular liquidity operations, which is done at the repo rate.
To give banks more flexibility and to facilitate their liquidity management, as an interim measure, the central bank also provided an additional fixed-rate reverse repo (in which it absorbs liquidity) and MSF (through which it lends at a slightly higher cost) window on all days.