SDF Balance Hits Record ₹2.6 Lakh Crore in Q1 FY26
Why in the news
Banks kept more of their idle cash with the Reserve Bank in the first quarter of FY26, pushing the Standing Deposit Facility to a record average balance.
Key facts
- Facility: Standing Deposit Facility (SDF) of the Reserve Bank of India.
- Average quarterly balance: ₹2.6 lakh crore, a record high.
- Period: Q1 FY26, that is April to June 2025.
Why balances rose
- Credit growth was muted, so banks had little demand to lend into.
- A liquidity overhang persisted, leaving a surplus that banks chose to park with RBI.
| Indicator | Reading |
|---|---|
| SDF average balance | ₹2.6 lakh crore |
| Quarter | April-June 2025 (Q1 FY26) |
| Backdrop | Weak credit demand, surplus liquidity |
Exam angle
- Term: SDF, a facility where banks park surplus funds with RBI.
- Cause: weak credit demand plus surplus liquidity.
- Figure: ₹2.6 lakh crore, record average quarterly balance.