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Review of Instructions on Bulk Deposits for Regional Rural Banks (RRBs)

To optimize the bulk deposit threshold for Regional Rural Banks, the term “Bulk Deposit” in the context of Regional Rural Banks has been amended to denote singular rupee term deposits amounting to one crore rupees or more. The pertinent segments of the Master Direction Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 dated March 03, 2016, as revised, are provided in the table below:

Amendments to Master Direction – Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 dated March 03, 2016

Sr. No.

Existing Section

Amended Section

Para 3 (a) (i)

Definitions

(a) In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:

(i) “Bulk Deposit” means:

i. Single Rupee term deposits of Rupees two crore and above for Scheduled Commercial Banks (excluding Regional Rural Banks) and Small Finance Banks.

ii. Single Rupee term deposits of Rupees fifteen lakh and above for RRBs.

Definitions

(a) In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:

(i) “Bulk Deposit” means:

i. Single Rupee term deposits of Rupees two crore and above for Scheduled Commercial Banks (excluding Regional Rural Banks) and Small Finance Banks.

ii. Single Rupee term deposits of Rupees one crore and above for RRBs.

These directions shall apply to all Regional Rural Banks.

Click to Access the Directions

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