Standing Deposit Facility

On 9th April 2025, Reserve Bank of India (RBI) Governor while announcing the monetary policy expressed concern that banks, instead of lending funds in the uncollateralised call money market, are parking it in the standing deposit facility (SDF).

What is SDF?

  • The SDF is a tool to absorb liquidity (deposits) from commercial banks without giving government securities to them in return.
  • It is different from the reverse repo facility in that it does not require banks to provide collateral while parking funds.
  • It was introduced on April 8, 2022.
  • In January 2014, the 'Expert Committee to ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Buy June 2025 Issue

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Related Content

Economy Watch