RBI Revises Bulk Deposit Limit Of Regional Rural Banks To Rs 1 Crore

RBI Revises Bulk Deposit Limit Of Regional Rural Banks To Rs 1 Crore

• The Reserve Bank of India (RBI) has conducted a review of bulk deposit limits for financial institutions, specifically focusing on Regional Rural Banks (RRBs). As a result, the bulk deposit limit for RRBs has been significantly increased from Rs 15 lakh to Rs 1 crore. This adjustment carries significant implications for the operational framework of RRBs and aims to create a more equitable banking landscape.

• This alteration will have implications on how banks can offer interest rates on bulk deposits. With the increased limit, RRBs will face constraints on operational autonomy, as they will need to offer a single interest rate to all depositors with the same tenure.

• Deposits in RRBs are secured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), ensuring protection of up to five lakh rupees for each depositor, thereby instilling confidence in depositors.

Also Read: Weekly Current Affairs (Science & Technology) 30 September - 06 October 2023 Bitbank: What is the name of the world's longest hiking-only footpath?

                         >> Download Current Affairs PDFs Here

                              Download Sakshi Education Mobile APP

Published date : 30 Oct 2023 05:15PM