Consider the following statements:

1. Bank rate is the interest rate which the Reserve Bank of India (RBI) charges on its long-term lendings.

2. Bank rate has been fully aligned with the Marginal Standing Facility.

Which of the statements given above is/are correct?

· The interest rate which the Reserve Bank of India (RBI) charges on its long-term lendings is known as the bank rate.

· The clients who borrow through this route are the Government of India, state governments, banks, financial institutions, co-operative banks, Non-Banking Financial Companies (NBFCs), etc. The rate has direct impact on long term lending activities of the concerned lending bodies operating in the Indian financial system.

· The rate was realigned with the MSF (Marginal Standing Facility) by RBI in February 2012.

· By March 2018, it was 6.25 per cent.