Question
What is the new Standing Deposit Facility (SDF) rate as
per the June 2025 MPC meeting?Solution
The Standing Deposit Facility (SDF) is a tool used by the RBI to absorb excess liquidity. After the June 2025 55th Monetary Policy Committee (MPC) meeting, the SDF rate was revised to 5.25%. The SDF typically lies 25 basis points below the repo rate, which now stands at 5.50%.
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