Banks have parked a record ₹4.52 lakh crore in the RBI's Standing Deposit Facility (SDF) at 5% overnight.
GK and monthly revision
Surplus liquidity fuels record parking in SDF
Banks have parked a record ₹4.52 lakh crore in the RBI's Standing Deposit Facility (SDF) at 5% overnight. This allows them to borrow funds at lower rates and earn a significant spread by depositing with the central bank. This reflects substantial surplus liquidity in the banking system, which is significant for understanding the current economic conditions and monetary policy.
Revision structure
Monthly events and exam calendar context
Static GK and one-liner notes
Quiz and mock-test revision path
Key points
Exam-ready takeaways
This allows banks to borrow funds at lower rates, around 4.27% from the TREPS market.
Banks are earning a significant spread by depositing with the central bank.
This reflects substantial surplus liquidity in the banking system.
The SDF was introduced by the RBI in April 2022 as an additional tool for liquidity management.
How to study
Turn news into exam marks
Revise monthly events by exam family instead of reading random updates.
Pair one-liners with mock tests so mistakes become the next revision list.
Keep state job pages, calendar pages and GK packs connected in one path.