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The Reserve Bank of India (RBI) on 15 July 2013 announced measures to deal with rupee volatility which includes lifting of two interest rates by 200 basis points each and a planned sale of 120 billion rupees (2 billion dollars) of Government bonds in July 2013. RBI has also adjusted the Marginal Standing Facility (MSF) and the Bank Rate to 10.25% each which were 8.25% previously. What does Marginal Standing Facility mean?

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