What is Liquidity adjustment facility (LAF)?

Posted by Pinki | Updated on

Liquidity adjustment facility (LAF) is a monetary policy to which allows banks borrow money through repurchase agreements. LAF is used to aid banks in adjusting the day to day mismatches in liquidity. LAF helps banks to quickly borrow money in case of any emergency or for adjusting in their SLR/CRR requirements.


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