RBI Changes SDF, MSF Timings In Sync With Call Money Market Hours

The Reserve Bank of India (RBI) has made an announcement regarding the timings for two of its most important liquidity tools, Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF). From July 1, 2025, both these facilities will be operative between 7:00 PM and 11:59 PM on all days, the RBI said in an official release issued on June 30, 2025.

The change follows the opening of call money market hours, which will now be available until 7:00 PM. The new hours for SDF and MSF have replaced the existing window of 5:30 PM to 11:59 PM. The change is part of the RBI’s ongoing updates to ensure that liquidity management tools remain in sync with market operations.

Change Follows Extension In Call Money Market Hours

RBI’s decision to change the timing of these instruments is directly linked to the extension of call money market trading hours. The call money market deals with short-term funds between banks and plays a vital role in maintaining the day-to-day liquidity ratio in the banking system.

Previously, SDF and MSF were operational for banks from 5:30 PM onwards. Since the call money market now operates till 7:00 PM, the RBI has revised the access window for these liquidity instruments to start from 7:00 PM instead.

What Are SDF And MSF

SDF allows banks to park excess funds with the RBI without any collateral. It helps the RBI absorb liquidity overhang from the banking system.

On the other hand, MSF enables banks to borrow funds from the RBI in case of a shortfall, by pledging government securities. It is generally used in emergency situations when banks need overnight funds.

Both tools are part of the RBI’s liquidity adjustment facility framework and play a role in maintaining stability in the money market.

No Change In Other Terms And Conditions

Other than the revision of the timing, the RBI has made it clear that all other terms and conditions for both SDF and MSF remain unchanged. This includes interest rates, access procedures, and the eligibility criteria for participating banks.

Daily Availability Of Liquidity Tools

The RBI has also assured that the revised time window will apply on all days to ensure that banks will always have access to enough liquidity and deposit routes even after normal market hours. This new change will help to bring about greater synchronisation between various elements of the financial system and facilitate smoother liquidity operations.