Reserve Bank Of India (RBI) stated on Friday that in order to provide an additional avenue for liquidity management to Regional Rural Banks (RRBs), it has been decided that Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) will be extended to Scheduled RRBs meeting the some criteria. These include Implemented Core Banking Solution (CBS), a minimum CRAR of nine per cent and full compliance with the terms and conditions for availing LAF and MSF issued by Financial Markets Operations Department (FMOD). The names of RRBs which meet the eligibility norms to participate in LAF and MSF (Positive List) and of those RRBs found ineligible (Negative List) will be intimated to the banks concerned. The eligibility status of the banks will be reviewed on an ongoing basis.
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