RBI revises bulk FD limit for these banks to Rs 1 crore

The Reserve Bank of India (RBI) decided to raise the criteria for ‘bulk deposits’ for regional rural banks (RRBs) to Rs 1 crore from the current Rs 15 lakhs in order to raise more funds.

According to the RBI notification dated October 26, 2023, “It has been decided to enhance the bulk deposit limit for Regional Rural Banks.”

Accordingly, “Bulk Deposit” for Regional Rural Banks would now mean Single Rupee term deposits of Rupees one crore and above”.

Scheduled Commercial Banks limit
The single rupee term deposits of Rupees two crore and above for scheduled commercial banks (excluding Regional Rural banks) and Small Finance Banks. This limit is kept unchanged.

Regional Rural banks limit
The limit is raised to one crore and above for single rupee term deposits of regional rural banks.

Earlier, in terms of what “Bulk Deposit” means:

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

Amendments to Master Directions
Sl. No.	Existing Section	Amended Section
Para 3 (a) (i)	Definitions	Definitions

	(a) In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:	(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) “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.	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.	ii. Single Rupee term deposits of Rupees one crore and above for RRBs.

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Source: RBI notification

Most of the banks offer different rates on bulk deposits. Let us see how big banks such as SBI, HDFC Bank and ICICI are offering on deposits below Rs 2 crore and on bulk deposits ( Above Rs 2 crore). Say for example, SBI offers interest rate between 3% to 7.10% (including Amrit Kalash). While, on bulk deposits SBI offers interest rate between 4.75% to 6.75%

HDFC Bank offers an interest rate between 3% to 7.20% for general citizens on deposits below Rs 2 crore. On bulk deposits the bank offers interest rates between 4.75% to 7.25%.

ICICI Bank
ICICI Bank offers an interest rate between 3% to 7.10% for general citizens on deposits below Rs 2 crore. On bulk deposits the bank offers interest rates between 4.75% to 7.25%.

Bank of Baroda
Bank of Baroda offers an interest rate between 3% to 7.25% for general citizens on deposits below Rs 2 crore. On bulk deposits the bank offers interest rates between 4% to 7.25%.

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