As per the Reserve Bank of India’s (RBI) revised guidelines announced on June 7, 2024, what is the new limit for bulk deposits for scheduled commercial banks and small finance banks (SFBs)?

Explanation

On June 7, 2024, the Reserve Bank of India (RBI) revised the definition of bulk deposits for scheduled commercial banks and small finance banks (SFBs). The new limit for bulk deposits is now set at Rs 3 crore and above. This is an increase from the previous threshold of Rs 2 crore. Bulk deposits refer to large, single-rupee term deposits made with banks, which often attract higher interest rates due to their size. This change was announced by RBI Governor Shaktikanta Das during the Monetary Policy Committee (MPC) meeting, aimed at aligning deposit practices with current market conditions. It is important to note that regional rural banks (RRBs) are excluded from this revised limit.