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Prelims and Mains, All at one place

Standing Deposit Facility

< 1 min read

Definition: Introduced in 2022, SDF is the rate at which the RBI absorbs uncollateralized overnight deposits from banks without providing government securities.

Prelims Pointers:

  • Acts as the floor of the LAF corridor.
  • Replaced the fixed Reverse Repo rate.
  • Does not require amendment of the RBI Act.
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