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RBI/2020-21/76 DOR.RRB.No.28/31.01.001/2020-21 December 4, 2020 All Regional Rural Banks Madam/ Sir, Introduction of Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) for Regional Rural Banks (RRBs) In order to provide an additional avenue for liquidity management to Regional Rural Banks (RRBs), it has been decided that Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) will be extended to Scheduled RRBs meeting the following criteria:
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FAQ :
The Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) are being introduced for eligible Regional Rural Banks (RRBs).
The purpose is to provide an additional avenue for liquidity management to Regional Rural Banks (RRBs).
RRBs must have implemented a Core Banking Solution (CBS), have a minimum CRAR of nine per cent, and be fully compliant with the terms and conditions for availing LAF and MSF issued by the Financial Markets Operations Department (FMOD).
No, only Scheduled RRBs meeting specific criteria will be eligible. The RBI will provide lists of eligible and ineligible RRBs.
The RBI will intimate the concerned banks about their eligibility status, which will be reviewed on an ongoing basis.
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Source : https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12004&Mode=0