RBI/2018-19/128
DBR.DIR.BC.No.27/13.03.00/2018-19

February 22, 2019

All Scheduled Commercial Banks (excluding Regional Rural Banks)
All Small Finance Banks

Dear Sir/Madam

Review of Instructions on Bulk Deposit

In terms of extant instructions, banks have been given discretion to offer differential rate of interest on the bulk deposits as per their requirements and Asset-Liability Management (ALM) projections.

2. In this connection, as announced in the ‘Statement on Developmental and Regulatory Policies’ of the Sixth Bi-monthly Monetary Policy Statement dated February 07, 2019, it has been decided to revise the definition of ‘bulk deposits’ and provide operational freedom to banks in raising these deposits.

3. Accordingly, instructions contained in Master Directions on Interest Rate on Deposits issued vide DBR.Dir.No.84/13.03.00/2015-16 dated March 03, 2016 stand amended as under:

3.1 The existing paragraph No. 3(a)(i)(i) on bulk deposit of the aforesaid Master Direction stands replaced as under:

(i) Single Rupee term deposits of Rupees two crore and above for Scheduled commercial Banks (excluding Regional Rural banks) and Small Finance Banks.

3.2 In the existing paragraph No. 4(c), the following shall be added:

The banks shall maintain the bulk deposit interest rate card in their Core banking system to facilitate supervisory review.

Yours faithfully,

(Dr. S.K. Kar)
Chief General Manager