The Reserve Bank of India has allowed regional rural banks (RRBs) to access the liquidity adjustment facility (LAF), marginal standing facility (MSF) and call or notice money market. This is aimed at facilitating better liquidity management for these lenders.

Currently, RRBs are not permitted to access the liquidity windows of the RBI as well as the call or notice market.

Marginal Standing Facility (MSF) is the rate at which the banks are able to borrow overnight funds from RBI.

"In order to facilitate more efficient liquidity management by the RRBs at competitive rates, it has been decided to extend the LAF and MSF to RRBs. It has also been decided to permit the RRBs to participate in the call/notice money market, both as borrowers and lenders," RBI said.