Changes in Fixed Deposits Regulations

Fixed deposits are a popular investment choice known for their safety. Recently, the Reserve Bank of India (RBI) made a significant decision concerning fixed deposits, particularly targeting bulk deposits.

Increased Limit

The RBI has raised the limit for bulk fixed deposits from Rs 2 crore to Rs 3 crore. Bulk fixed deposits typically offer higher interest rates compared to retail deposits.

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These deposits involve depositing a lump sum of money, categorized as bulk deposits. Banks have the flexibility to offer varying interest rates on bulk deposits based on their asset liability management (ALM) estimates.

Insights from RBI Governor

RBI Governor Shaktikanta Das announced that deposits of Rs 3 crore and above will now be classified as bulk fixed deposits for commercial banks

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and small finance banks. Additionally, the limit for bulk deposits for local area banks is proposed to be set at Rs 1 crore and above.

Expert Opinion

Adhil Shetty, CEO of, commented that treating deposits of Rs 3 crore and above as bulk deposits might pose challenges. However, he believes that small depositors are unlikely to be affected by this change.

Other RBI Decisions

In addition to the revision in deposit limits, the RBI aims to streamline guidelines related to export and import of goods

and services under the Foreign Exchange Management Act (FEMA) 1999. This move is expected to facilitate business activities and promote ease of doing business.

Promoting Digital Payments

Governor Shaktikanta Das also emphasized the promotion of digital payments. As part of this initiative, the RBI proposes to establish a Digital Payment Intelligence Platform.

This platform will facilitate the sharing of network-level intelligence and real-time data, contributing to the advancement of digital payment systems.

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