According to RBI, what is the bulk deposit limit for Local Area Banks in a single rupee term deposit?

The correct answer is ₹1 crore and above.

In News

• The Reserve Bank of India (RBI) has defined bulk deposits for Local Area Banks as single rupee term deposits of ₹1 crore or more.

Key Points

• Bulk deposits refer to high-value fixed deposits accepted from institutions or high-net-worth individuals.
• Local Area Banks (LABs) provide banking services in a limited geographical region.
• The bulk deposit threshold aids in liquidity and risk management for banks.
• Bulk deposits must be reported separately as per RBI guidelines.
• The bulk deposit limit was enhanced for Scheduled Commercial Banks (SCBs) (excluding Regional Rural Banks) and Small Finance Banks (SFBs) as Single Rupee term deposits of Rs 3 crore and above. 

Additional Information

• Bulk Deposit Limits
  • Bulk deposits for Scheduled Commercial Banks and Co-operative Banks may have different limits.
  • Local Area Banks were introduced to provide financial inclusion in specific regions.
  • Bulk deposits play a crucial role in managing capital requirements for banks.