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.”