What changed
Previously, for RRBs, any single rupee term deposit of ₹15 lakh or more was classified as a bulk deposit. Now, the threshold has been raised to ₹1 crore, meaning only deposits of ₹1 crore and above will be treated as bulk deposits for RRBs.
What it means for you
RRBs can now accept deposits up to ₹99.99 lakh without triggering bulk deposit reporting and pricing rules. This gives RRBs more flexibility in pricing and managing larger retail deposits, potentially improving their deposit mobilization and reducing compliance costs.
What you must do
- Update internal systems and product definitions to reflect the new bulk deposit threshold of ₹1 crore for RRBs.
- Review and revise deposit pricing strategies for term deposits between ₹15 lakh and ₹1 crore, as they are no longer bulk deposits.
- Communicate the change to branch staff and treasury teams to ensure consistent application of bulk deposit rules.
- Ensure compliance with all other unchanged instructions in the Master Direction on Interest Rate on Deposits.
Who it affects
Regional Rural Banks (RRBs), Deposit operations teams at RRBs, Treasury and ALM teams at RRBs, Compliance departments of RRBs
What was the old bulk deposit limit for RRBs?
The old limit was ₹15 lakh and above for single rupee term deposits.
Does this change affect Scheduled Commercial Banks or Small Finance Banks?
No, the change applies only to Regional Rural Banks. For SCBs and SFBs, the bulk deposit threshold remains at ₹2 crore.
When did this revision take effect?
The circular was issued on October 26, 2023, and the revised definition is effective from that date.