MUMBAI, Jan 4 (Reuters) - Indian banks borrowed 17.70

billion rupees ($322.99 million) through the central bank's

marginal standing facility (MSF) on Jan. 3.

Banks can borrow from the MSF at 100 basis points higher

than the Reserve Bank of India's key lending rate of 8 percent.

Usually, banks tap this window during acute cash shortage.

($1=54.8 rupees)

(Reporting by Neha Dasgupta; Editing by Prateek Chatterjee)

Keywords: INDIA CBANK/MSF

(neha.dasgupta@thomsonreuters.com)(+91-22-6180-7177)(Reuters Messaging: neha.dasgupta.reuters.com@reuters.net)

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