RBI Ups Bulk Fixed Deposit Threshold to Rs 3 Crore

The Reserve Bank of India has increased the threshold for bulk fixed deposits to Rs 3 crore from the existing Rs 2 crore. This change aims to optimize banks' liquidity management. Additionally, the RBI plans to enhance digital payment security and rationalize FEMA guidelines to promote ease of doing business.

The Reserve Bank of India (RBI) on Friday raised the threshold for bulk fixed deposits to Rs 3 crore from the previous limit of Rs 2 crore. This adjustment is meant to aid banks in better managing their liquidity, with bulk fixed deposits typically earning slightly higher interest rates compared to retail term deposits.

Governor Shaktikanta Das made the announcement during the bi-monthly policy briefing, indicating that going forward, a single rupee term deposit of up to Rs 2 crore with Scheduled Commercial Banks (SCBs) and Small Finance Banks (SFBs) will be categorized as retail fixed deposits. The definition of bulk deposits has thus been revised to a single rupee term deposit of Rs 3 crore and above for SCBs and SFBs.

The RBI also aims to rationalize the guidelines under the Foreign Exchange Management Act (FEMA) of 1999 to reflect the changing dynamics of global trade. This move is expected to provide greater operational flexibility to authorized dealer banks and promote ease of doing business. Additionally, the RBI intends to deepen digital payment security by establishing a Digital Payments Intelligence Platform for real-time data sharing and network-level intelligence, addressing rising digital fraud concerns.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)