New Delhi: Banks will treat deposits of over ₹2 crore as ‘bulk’ after the Reserve Bank of India (RBI) today doubled the limit for the same from the earlier ₹1 crore. Commercial banks normally offer a lower rate of interest on bulk deposits. According to current RBI rules, last reviewed in January 2013, banks have the option of not permitting premature withdrawals of ‘large rupee term deposits’ of ₹1 crore and above. Banks can offer different rates of interest only on bulk deposits of ₹1 crore and more for the same maturity period. Banks have to disclose in advance the schedule of interest rates payable on deposits, including deposits on which differential interest will be paid.

Source: Mint February 07, 2019 08:15 UTC