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What β is Standing Deposit Facility (SDF) Rate
Banking Ki Baat 13
Standing Deposit Facility (SDF) Rate
In short: Banks park surplus with RBIπ RBI pays interest β‘οΈ Helps control inflation & stabilize rates.
Banking Ki Baat 13
Standing Deposit Facility (SDF) Rate
β’Think of this as theπ΅ interest the RBI pays to banks when banks keep their extra money with the RBI without giving any security (like government bonds).
β’It is basically a way for the RBI toπ§Ή absorb extra money from the banking system.
β’Example: If a bank has more money than it needs, it can park it safely with RBI at the SDF rate and earn some interest.
You can say SDF is like aπ safe locker for banksβ extra money, with interest.
In short: Banks park surplus with RBI
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