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RBI Revises Bulk Deposit Threshold to Rs 3 Crore

By ThePip DeskRBI Revises Bulk Deposit Threshold to Rs 3 Crore

Discover the Reserve Bank of India’s updated bulk deposit limit of Rs 3 crore for banks, effective October 1, 2024, impacting liquidity management.

The Reserve Bank of India introduced revised regulations for fixed deposits that took effect on October 1, 2024. This regulatory update reclassifies what constitutes a bulk deposit for various banking institutions across the country.

Understanding the New Deposit Limits

The central bank adjusted the financial parameters governing large-scale institutional funds within the national banking network. The specific updates include:

Previously, the threshold for bulk deposits was set at Rs 2 crore for banking institutions.

The Reserve Bank of India has now increased this limit to Rs 3 crore for scheduled commercial banks and small finance banks.

These updated norms apply specifically to single rupee term deposits, ensuring that retail deposits remain safely below this new threshold.

Mechanics of Liquidity Management

This adjustment is designed to provide banks with greater flexibility in managing their liquidity and deposit portfolios. These regulatory changes form a direct part of the central bank’s ongoing efforts to modernize banking regulations and align them with current economic conditions.

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