RBI increases limit for ‘bulk deposits’ to Rs 2 cr

Mumbai, February 7 

The RBI today decided to raise the criteria for ‘bulk deposits’ for banks to Rs 2 crore from the current Rs 1 crore, to provide more operational freedom to lenders to raise funds.

Banks have been given discretion to offer differential rate of interest on the bulk deposits as per their requirements and asset-liability management projections. Interest rates on bulk deposits are marginally higher than on smaller-amount fixed deposits for similar maturity period.

It also proposed that banks would maintain their bulk deposit interest rate cards in the core banking system for supervisory review. — PTI