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Indian banks borrow Rs 1.17 trillion from RBI under MSF

MUMBAI: Indian banks borrowed Rs 1.17 trillion ($18.72 billion) from the Reserve Bank of India's marginal standing facility (MSF) window on September 13, soaring above the Rs 725.08 billion on September 12.

Banks tapped the emergency funds window due to acute liquidity tightness after the corporate advance tax outflows over the weekend. 

The Indian central bank also offered a special two-day funding window through the 
MSF on Saturday. 

The 
RBI had raised the MSF rate by 200 basis points to 10.25 per cent and also imposed restrictions on daily borrowings by banks under its repo window in July. 

Banks usually tap the MSF rate during acute cash tightness.