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The SDF rate is placed how far below the policy repo rate?
A100 basis points
B10 basis points
C25 basis points
D50 basis points
Answer & Solution
Correct answer: C. 25 basis points
1. The SDF is the floor of the corridor.
2. It sits a fixed distance below the repo rate.
3. That distance is 25 basis points.
_Source: Reserve Bank of India, Monetary Policy function overview (rbi.org.in)._
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