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Understanding Standing Deposit Facility by vkrjpt1997 is a document available to read on EtoBox.
What is Understanding Standing Deposit Facility about?
The Standing Deposit Facility (SDF) is a tool introduced by the RBI in April 2022 to absorb excess liquidity from banks without requiring collateral. It allows banks to park their surplus funds and earn interest, functioning as a permanent liquidity absorption mechanism. The SDF differs from the Reverse Repo as it does not involve asset exchange and operates below the Repo Rate.
- Author
- vkrjpt1997
- Language
- EN