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Standing Deposit Facility
April 11 , 2022
861 days
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- The Standing Deposit Facility is viewed as a strong tool to suck out the surplus liquidity.
- It was proposed by the RBI.
- This concept, first recommended by the Urjit Patel committee report in 2014, may soon become part of the central bank’s toolkit to manage liquidity.
- A standing deposit facility is a remunerated facility that will not require the provision of collateral for liquidity absorption.
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