Science & Environment
Fixed Deposit Terms: 9 banks make changes post RBI’s…
Latest Fixed Deposit Terms: Following the Reserve Bank of India’s (RBI) latest monetary policy meet, several major banks have adjusted their fixed deposit terms and interest rates in line with the new regulations. RBI governor Shaktikanta Das on Friday announced a change in the definition of bulk fixed deposits, suggesting that banks’ fixed deposits of Rs 3 crore and above will now be considered bulk deposits, as opposed to the current threshold of Rs 2 crore.
“On a review of the bulk deposit limit, it is proposed to revise the definition of bulk deposits as ‘Single Rupee term deposit of Rs 3 crore and above’ for SCBs (excluding RRBs) and SFBs. Further, it is also proposed to define the bulk deposit limit for Local Area Banks as ‘Single Rupee term deposits of Rs 1 crore and above’, as applicable in case of RRBs,” Das had said.
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Consequently, individual deposits between Rs 2 crore and Rs 3 crore will be categorized as retail fixed deposits, which typically have different interest rates compared to bulk deposits, according to an ET report.
Several banks have already implemented these changes and updated their retail deposit amounts from Rs 2 crore to Rs 3 crore.
HDFC Bank and Bank of Baroda have revised their fixed deposit interest rates and updated the retail deposit amount, with the changes taking effect from June 12, 2024. Utkarsh SFB has also revised its FD interest rate and updated the retail deposit amount, effective from June 7, 2024.
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Other banks that have made similar changes include Punjab National Bank (effective from June 10, 2024), Axis Bank and Yes Bank (both effective from June 8, 2024), DCB Bank (effective from June 7, 2024), and RBL Bank (effective from June 8, 2024).
State Bank of India (SBI) has not revised its FD interest rate date but has updated the retail deposit amount.
“On a review of the bulk deposit limit, it is proposed to revise the definition of bulk deposits as ‘Single Rupee term deposit of Rs 3 crore and above’ for SCBs (excluding RRBs) and SFBs. Further, it is also proposed to define the bulk deposit limit for Local Area Banks as ‘Single Rupee term deposits of Rs 1 crore and above’, as applicable in case of RRBs,” Das had said.
Also Read | How to be a crorepati! Use this simple SIP trick to save over Rs 1 crore with just over Rs 5,000 investment per month
Consequently, individual deposits between Rs 2 crore and Rs 3 crore will be categorized as retail fixed deposits, which typically have different interest rates compared to bulk deposits, according to an ET report.
Several banks have already implemented these changes and updated their retail deposit amounts from Rs 2 crore to Rs 3 crore.
HDFC Bank and Bank of Baroda have revised their fixed deposit interest rates and updated the retail deposit amount, with the changes taking effect from June 12, 2024. Utkarsh SFB has also revised its FD interest rate and updated the retail deposit amount, effective from June 7, 2024.
Also Check | NPS Calculator: How To Become A Crorepati With National Pension System – Top 10 things to know from contributions, returns, monthly pension & more
Other banks that have made similar changes include Punjab National Bank (effective from June 10, 2024), Axis Bank and Yes Bank (both effective from June 8, 2024), DCB Bank (effective from June 7, 2024), and RBL Bank (effective from June 8, 2024).
State Bank of India (SBI) has not revised its FD interest rate date but has updated the retail deposit amount.
