In context with Banking in India, what is the difference between liquidity adjustment facility-repo rate and marginal standing facility rate ?

  1. Under Repo rate banks can borrow above SLR Requirements, under MSF, Banks can borrow within SLR requirements
  2. Under Repo, banks can borrow up to 5% of net demand and time liabilities, under MSF, they can borrow up to no limit

Choose the correct option:

[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 & 2 are correct
[D] Neither 1 nor 2 is correct

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