Question

Recently, the Reserve Bank of India has been mulling

over the idea of introducing Standing Deposit Facility (SDF) which aims to:

A to reduce the excess liquidity in the system

B absorb additional liquidity with the banks by allowing them to park funds with the RBI.

C increase the savings in the economy by providing new instruments.

D boost the slowing economy by mobilizing investments in infrastructure

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IB ACIO Executive

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