Skip to main content

Guidelines on acceptance of bulk deposits by banks

Reserve Bank of India (RBI) has updated the guidelines on acceptance of bulk deposits by banks.

What are bulk deposits?

 “Bulk Deposit” means single Rupee term deposits of –

Deposit Banks
₹3 crore (earlier ₹2 crore) and above
  • Scheduled Commercial Banks [excluding Regional Rural Banks (RRBs)]
  • Small Finance Banks
₹1 crore (earlier ₹15 lakh) and above
  • Regional Rural Banks (RRBs)
  • Local Area Banks
  • Scheduled Primary (Urban) Co-operative Banks (UCBs) in Tier 3 & 4
₹15 lakh and above
  • Other UCBs


What are the revised guidelines on pre-mature withdrawal option?

  • Commercial Banks shall have the freedom to offer term deposits without premature withdrawal option, provided that all term deposits accepted from individuals (held singly or jointly) for amount of ₹1 crore (earlier ₹15 lakh) and below shall have premature-withdrawal-facility.
  • Co-operative Banks shall have the freedom to offer term deposits without premature withdrawal option, provided that all term deposits accepted from individuals (held singly or jointly) and Hindu Undivided Families for amount of ₹1 crore (earlier ₹15 lakh) and below shall have premature-withdrawal-facility.

What are the revised guidelines on NRE / NRO term deposits?

Interest rates on NRE / NRO term deposits shall vary only on account of one or more of the following reasons –

Tenor of Deposits Commercial Banks and Co-operative Banks shall have the freedom to determine the maturity / tenor of the deposit subject to the condition that minimum tenor of NRE term deposits shall be 1 year and that of NRO term deposits shall be 7 days.
Size of Deposits Differential interest rate shall be offered only on bulk deposits.
Non-availability of Premature withdrawal option Commercial Banks and Co-operative Banks shall have the freedom to offer NRE / NRO term deposits without premature withdrawal option, provided that all NRE / NRO term deposits accepted from individuals (held singly or jointly) for amount of ₹1 crore and below shall have premature-withdrawal-facility.


References

Reserve Bank of India. (2023, October 26). 'Non-Callable Deposits - Master Direction on Interest Rate on Deposits'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12555&Mode=0

Reserve Bank of India. (2023, October 26). 'Review of Instructions on Bulk Deposits for Regional Rural Banks (RRBs)'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12556&Mode=0

Reserve Bank of India. (2024, June 07). 'Amendment to Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12690&Mode=0

Reserve Bank of India. (2024, January 01). 'Review of Instructions on Bulk Deposits for Urban Co-operative Banks (UCBs)'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12588&Mode=0


Follow at - Telegram   Instagram   LinkedIn   X   Facebook

Labels:

Comments

Post a Comment

Popular Posts

Credit Facilities – Lending against Gold and Silver Collateral

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable to lending against gold and silver collateral. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) Non-Banking Financial Companies (NBFCs) for all layers – Deposit taking NBFC (NBFC-D) NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro Finance Institutions (NBFC-MFI)  NBFC-Infrastructure Finance Company (NBFC-IFC)  Infrastructure Debt Fund-NBFC (IDF-NBFC)  Housing Finance Company (HFC)  To whom are the directions partially applicable? The prudential regulations are not applicable to ‘NBFCs-B...
Post a Comment
Read more

Highlights of RBI Annual Report 2025-26 – Chapter 1 to 3

Reserve Bank of India (RBI) has published its annual report for the financial year 2025-26. In a series of articles, we will go through the highlights of the report. This is the first article in the series.  Legal framework for publication of Annual Report by the RBI Report of the Central Board of Directors on the working of RBI for the year is submitted to the Central Government in terms of Section 53(2) of the RBI Act, 1934. The letter of transmittal is signed by the RBI Governor and addressed to the Finance Secretary, Ministry of Finance, Government of India. Documents submitted by the RBI to the Central Government In pursuance of Section 53(2) of the RBI Act, 1934, the following documents have been submitted to the Central Government – A copy of the Annual Accounts for the year ended March 31, 2026 certified by the RBI’s Auditors and signed by Chief General Manager-in-charge, all the Deputy Governors and Governor. 2 copies of the Annual Report of the Central Board on the workin...
Post a Comment
Read more

Credit Facilities – Digital Lending Guidelines

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable to digital lending. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) All India Financial Institutions (AIFIs) regulated by RBI – Export Import Bank of India (EXIM Bank) National Bank for Agriculture and Rural Development (NABARD) National Housing Bank (NHB) Small Industries Development Bank of India (SIDBI) National Bank for Financing Infrastructure and Development (NaBFID) Non-Banking Financial Companies (NBFCs) for all layers – Deposit taking NBFC (NBFC-D) NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro...
Post a Comment
Read more

Credit Facilities – Finance to Non-Banking Financial Companies (NBFCs)

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable in respect of finance to Non-Banking Financial Companies (NBFCs). To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Primary (Urban) Co-operative Banks (UCBs) All India Financial Institutions (AIFIs) regulated by RBI – Export Import Bank of India (EXIM Bank) National Bank for Agriculture and Rural Development (NABARD) National Housing Bank (NHB) Small Industries Development Bank of India (SIDBI) National Bank for Financing Infrastructure and Development (NaBFID) What are the conditions on finance to NBFCs? Commercial Banks and SFBs The bank shall extend need based working capital facilities as well as term loans to NBFCs registered with the RBI and engaged in infrastructure financing, equipment leasing, hire-purchase, l...
Post a Comment
Read more

Credit Facilities – Gold Metal Loans

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable to gold metal loans. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) What is Gold Metal Loans’ (GML)? Gold Metal Loans (GML) mean loans extended by eligible banks to specified borrowers in the form of gold metal. GMS-linked GML – means GML extended by designated banks under the Gold Monetization Scheme, 2015 (GMS), utilising – (i) the gold deposit accepted by them as Short-term Bank Deposit under the GMS, or (ii) gold borrowed from other designated banks under GMS, and where the repayment can be either in gold or in cash or in a combination of both. Import-linked GML – means GML extended by nominated banks authorized to import gold, where the source of gold metal lent is gold imported by them, and where repayment h...
Post a Comment
Read more