RBI Enhances Bulk Fixed Deposit Threshold to Rs 3 Crore for Better Asset Management

The Reserve Bank of India (RBI) has increased the threshold for bulk fixed deposits from Rs 2 crore to Rs 3 crore. This move aims to improve asset liability management of banks. It also proposes to establish a Digital Payments Intelligence Platform and rationalize the guidelines for export and import under FEMA, 1999.

The Reserve Bank of India (RBI) has announced an increment in the bulk fixed deposit threshold from Rs 2 crore to Rs 3 crore. The move seeks to enhance asset liability management for banks, while single rupee term deposits up to Rs 2 crore will now be classified as retail fixed deposits. Previously, the threshold was set at one crore before being revised to two crore.

RBI Deputy Governor, Swaminathan J, remarked during a media interaction that the revision is a routine exercise aimed at better asset liability management for banks. Regarding potential impacts on deposit costs, Swaminathan emphasized that outcomes are entity-dependent and not expected to induce systemic changes.

Governor Shaktikanta Das also highlighted initiatives to promote ease of doing business, including the proposed rationalization of FEMA guidelines and the establishment of a Digital Payments Intelligence Platform to curb digital payment frauds. This comes as part of RBI's broader effort to foster innovation and security within the fintech sector, exemplified by the forthcoming 'HaRBInger 2024' global hackathon.

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