RBI on October, 7th 2013, has reduced Marginal Standing Facility (MSF) rate from 9.5% to 9% to improve liquidity in the system. What is MSF?

• A. SF rate is the rate at which banks lodge funds overnight with RBI buying approved government securities.
• B. SF rate is the rate at which banks borrow funds overnight from other banks against approved government securities.
• C. SF rate is the rate at which banks borrow funds overnight from RBI against approved government securities.
• D. SF rate is the minimum rate at which banks lend to the borrowers.