The Reserve Bank of India (RBI) has proposed increasing the bulk deposit limit for scheduled commercial banks (SCBs) and small finance banks (SFBs) to Rs 3 crore from the current Rs 2 crore. The limit was previously raised in 2019 from Rs 1 crore. For local area banks, the proposed limit is Rs 1 crore, aligning with regional rural banks (RRBs). RBI Deputy Governor Swaminathan J highlighted that this revision aims to improve asset-liability management for lenders and classify bulk and retail deposits more effectively. Dinesh Khara, Chairman of State Bank of India, stated that this change would help reduce sensitivity to interest rate fluctuations.
RBI Proposes to Raise Bulk Deposit Limit to Rs 3 Crore for Banks
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