Marginal Standing Facility rate (MSF)
MSF = Marginal Standing Facility- How often
- At policy meetingsMoves with the repo rate at MPC meetings
- Next release
- Fri 4 DecIn 22 days · 10:00 AM
Raised by 25 bp, effective 7 October 2026.
Events on this chart
Source: RBI MPC, released 7 Oct 2026 · Chart: Clarity UPSC
- Previous
- 5.50%5 Dec 2025
- Highest
- 10.25%15 Jul 2013
- Lowest
- 4.25%22 May 2020
42 readings since 3 May 2011.
Story
The rate banks pay to borrow overnight from the Reserve Bank of India in an emergency. It is the ceiling of the rate corridor.
What is happening now As of 7 Oct 2026
The Marginal Standing Facility (MSF) rate rose to 5.75% on 7 October 2026. The Monetary Policy Committee raised the repo rate by 0.25 percentage point to 5.50% because inflation and its outlook had worsened, and the MSF rate moved with it to stay 0.25 percentage point above. It is back at its level of a year earlier; it was 5.50% from December 2025 until this rise.
Money has been plentiful, and banks have used the MSF little. The Reserve Bank of India put the banking surplus at an average of ₹5.9 lakh crore a day between its August and October 2026 meetings. From 12 to 16 October 2026 banks borrowed between ₹6 crore and ₹8,316 crore a day under the MSF, while they placed ₹1.05–2.06 lakh crore a day in the Standing Deposit Facility.
Why it matters
The Marginal Standing Facility (MSF) is a safety valve for banks. A bank that suddenly runs short of cash can borrow overnight from the Reserve Bank of India (RBI) at the MSF rate, within a limit, even by pledging the bonds it holds for its Statutory Liquidity Ratio (SLR). So a sudden shortage does not leave it unable to make payments.
Because this money is always on offer at the MSF rate, banks will not pay much more to borrow from one another. The MSF rate therefore caps overnight interest rates when money is tight. It moves with every repo rate decision.
What it is
Banks that still run short of money after the regular repo window of the Reserve Bank of India (RBI) can borrow overnight under the Marginal Standing Facility (MSF). They pledge government securities, and may even use securities they hold to meet the Statutory Liquidity Ratio (SLR).
The MSF rate sits 0.25 percentage point above the repo rate.
Read this number
- The publisher
- The Monetary Policy Committee of the RBI sets the repo rate. Three members come from the RBI, including the Governor, and three are appointed by the central government.
- Since
- May 2011
- Position
- Repo rate + 0.25 point
Terms on this page (4)
- NDTL
- Net Demand and Time Liabilities
- RBI
- Reserve Bank of India
- SDF
- Standing Deposit Facility
- SLR
- Statutory Liquidity Ratio
History
- May 2011The Reserve Bank of India (RBI) opens the Marginal Standing Facility (MSF) at 1 percentage point above the repo rate. Banks can borrow up to 1% of their Net Demand and Time Liabilities (NDTL) overnight, even if their Statutory Liquidity Ratio (SLR) holdings then fall short.
- 15 Jul 2013Raised to 10.25%, 3 percentage points above the repo rate, as part of measures to restore stability in the foreign exchange market.
- 6 Apr 2017The RBI narrows the corridor; the MSF rate is set 0.25 percentage point above the repo rate.
- 27 Mar 2020The limit for dipping into SLR holdings is raised from 2% to 3% of NDTL, at first until 30 June 2020.
- 8 Apr 2022The corridor, widened to 0.9 percentage point in 2020, is restored to 0.5 percentage point. The MSF rate is its ceiling and the new Standing Deposit Facility rate its floor.
Readings
| Period | Value | Status | Released |
|---|---|---|---|
| 7 Oct 2026 | 5.75% | Final | 7 Oct 2026 |
| 5 Dec 2025 | 5.50% | Final | 5 Dec 2025 |
| 6 Jun 2025 | 5.75% | Final | 6 Jun 2025 |
| 9 Apr 2025 | 6.25% | Final | 9 Apr 2025 |
| 7 Feb 2025 | 6.50% | Final | 7 Feb 2025 |
| 8 Feb 2023 | 6.75% | Final | 8 Feb 2023 |
| 7 Dec 2022 | 6.50% | Final | 7 Dec 2022 |
| 30 Sep 2022 | 6.15% | Final | 30 Sep 2022 |
| 5 Aug 2022 | 5.65% | Final | 5 Aug 2022 |
| 8 Jun 2022 | 5.15% | Final | 8 Jun 2022 |
| 4 May 2022 | 4.65% | Final | 4 May 2022 |
| 22 May 2020 | 4.25% | Final | 22 May 2020 |
For UPSC
The Marginal Standing Facility (MSF), opened in May 2011, is the ceiling of the rate corridor at 0.25 percentage point above the repo rate; the Standing Deposit Facility (SDF) is the floor at 0.25 percentage point below. The Bank Rate equals the MSF rate. MSF borrowing can draw on securities held for the Statutory Liquidity Ratio (SLR), which makes it a safety valve against sudden shortages of cash.