Banks borrowed Rs 4490 crore ($718.85 million) from the central bank's marginal standing facility (MSF) window on 26 November 2013, sharply lower than the Rs 13550 crore borrowed on 25 November 2013.
The Reserve Bank of India (RBI) cut the MSF rate by 25 basis points (bps) on 29 October 2013 in the Second Quarter Monetary Policy Review to 8.75 percent after raising the rate by 200 bps to 10.25 percent in mid-July. Banks usually tap the MSF rate during acute cash tightness. In the month of November 2013 till 26 November, on an average banks borrowed Rs 13062.47 crore. The highest borrowing till date in the month of November 2013 was recorded at Rs 28975 crore on 18 November 2013 and lowest at Rs 560 crore on 5 November 2013.
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