---
title: "Standing Deposit Facility (SDF): RBI Liquidity Tool"
description: "The Standing Deposit Facility (SDF) allows the RBI to absorb surplus bank liquidity overnight, impacting interest rates and monetary policy in India."
url: "https://modeldiplomat.com/learn/glossary/standing-deposit-facility"
---

[New](https://modeldiplomat.com/)

#

Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Standing Deposit Facility is a Reserve Bank of India instrument that absorbs surplus liquidity from banks overnight without giving them government securities as collateral.
- How does the SDF differ from the reverse repo?
- Where does the SDF rate sit relative to the repo rate?
- What is the legal basis for the SDF?
- Why was the SDF introduced when the reverse repo already existed?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

Go beyond the definition

## Research Standing Deposit Facility (SDF) like a delegate

Model Diplomat's AI drafts position papers, speeches, and country research with real sources — built for MUN and politics students.

## Research it like a delegate

Research on modeldiplomat.com

## Ask a follow-up about Standing Deposit Facility (SDF)

Open a cited briefing in Model Diplomat search — timelines, positions, and sources you can use in committee or exam answers.

[Start research on Standing Deposit Facility (SDF)](https://modeldiplomat.com/search?q=Explain%20Standing%20Deposit%20Facility%20\(SDF\)%20%E2%80%94%20key%20dates%2C%20actors%2C%20positions%2C%20and%20sources)

Example

On 8 April 2022, RBI Governor Shaktikanta Das operationalised the Standing Deposit Facility at 3.75 percent, making it the new floor of the liquidity adjustment corridor in place of the fixed-rate reverse repo.

Keep learning

## Go deeper than the definition

[Explore all Civil Service & Diplomatic Exams lessons](https://modeldiplomat.com/learn/civil-services)[Test yourself with a quiz](https://modeldiplomat.com/learn/glossary/quiz/civil-services)

## Take Standing Deposit Facility (SDF) beyond the glossary

Ask the AI research engine built for diplomacy — get briefings, position papers, and speeches with sources you can cite in committee.