Consider the following statements regarding instruments of monetary policy: 1. Standing deposit facility (SDF) rate was introduced in April 2022. 2. SDF rate replaced fixed reverse repo rate as the floor of the LAF corridor.

The Standing Deposit Facility (SDF) was introduced by the Reserve Bank of India in April 2022 as a new monetary policy instrument allowing the RBI to absorb liquidity from commercial banks without providing collateral in exchange. Upon its introduction, the SDF rate replaced the fixed reverse repo rate as the floor of the Liquidity Adjustment Facility (LAF) corridor, placed 25 basis points below the policy repo rate. Hence both statements 1 and 2 are correct.