Comments
The Reserve Bank of India (RBI) has decided to enhance the bulk deposit limit for large urban co-operative banks (UCBs) to ₹1 crore and above from the current ₹15 lakh and above.
Specifically, the new bulk deposit limit applies to UCBs in the Tier 3 (with deposits more than ₹1,000 crore and up to ₹10,000 crore) and Tier 4 (with deposits more than ₹10,000 crore) categories.
Co-operative banking experts say since a deposit of ₹15 lakh and above was so far considered a bulk deposit by all UCBs, a discerning customer could negotiate the rate of interest with a bank.
However, with the bulk deposit bar being raised to ₹1 crore and above, customers’ placing deposits below this threshold will earn a uniform rate of interest.
RBI said for all other UCBs (that is, other than scheduled UCBs in Tiers 3 and 4), the definition of bulk deposit will continue to be “single rupee term deposits of ₹15 lakh and above.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.