Question
In April 2022, RBI introduced the Standing Deposit
Facility (SDF). What is the major objective behind this?Solution
Explanation: In its April 2022 meeting, the committee introduced the Standing Deposit Facility (SDF), which allowed for the deposit of excess funds by banks with the RBI without the necessity of collateral in the form of government securities, thereby allowing effective liquidity management in a collateral-free manner.
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