MUMBAI, Dec 31 (Reuters) - Indian banks borrowed 222.65 billion rupees from the central bank’s marginal standing facility (MSF) window on Dec. 30 for one day, higher than the 385.37 billion rupees borrowed on Dec. 27 for three days.
The Reserve Bank of India cut the MSF rate by 25 basis points (bps) to 8.75 percent on Oct. 29. It had raised the rate by 200 bps to 10.25 percent in mid-July.
Banks usually tap the MSF rate during acute cash tightness. (Reporting by Himank Sharma; Editing by Subhranshu Sahu)