Standing Deposit Facility

It’s a facility provided by Reserve Bank of India in which the banks can park their funds with RBI.  Under Standing Deposit Facility, the eligible entities can place funds/deposits with Reserve Bank of India on overnight basis The overnight SDF facility will be available between 17:30 hrs to 23:59 hrs on all days, including Sundays and holidays and would be reversed on the following working day in Mumbai.

Interest: RBI will pay interest rate at 25 basis points below the policy rate.

Minimum size of deposit to be placed with RBI will be Rs. 1.00 cr and in multiples thereof.

Security: There will be no security given by RBI.

CRR SLR Eligibility: The balances held by banks with the RBI under the SDF shall be an eligible Statutory Liquidity Ratio (SLR) asset and such balances shall form part of “Cash” for SLR maintenance.  The balances held by banks with RBI under the SDF shall not be eligible for Cash Reserve Ratio (CRR) maintenance 

SDF- Auto Facility: The entities (Banks and other permitted entities) can avail SDF- Automated Sweep-in and Sweep-out facility.  The facility can be enables on e-Kuber platform of RBI.  The participating banks can set maximum balance limit and the balance in excess of the maximum set balance at the end of day will be considered as bid for placement of funds with RBI.   The SDF replaces the Fixed Rate Reverse Repo (FRRR) as the floor of the LAF corridor.  Standing Deposit facility was first mooted by Urjit Patel Committee which suggested SDF as non collateralized offering.