What is marginal standing facility wiki?

The Marginal Standing Facility (MSF) is a monetary policy tool used by central banks, such as the Reserve Bank of India, to provide overnight funds to banks in distress. It allows banks to borrow funds at a rate higher than the repo rate, typically used when they face liquidity shortages. The MSF aims to stabilize the banking system by ensuring that banks have access to emergency funds, thereby maintaining overall financial stability. It serves as a safety net for banks to manage their liquidity requirements effectively.