RBI revises bulk deposit threshold to ₹3 crore for SCBs, SFBs
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2024-25/40 · issued 07 Jun 2024 · ~2 min read
Quick answerRBI has raised the bulk deposit threshold from ₹2 crore to ₹3 crore for Scheduled Commercial Banks (excluding RRBs) and Small Finance Banks. For Local Area Banks, the threshold is set at ₹1 crore, aligning with RRBs. Effective immediately.
What changed
The definition of 'Bulk Deposit' under the Master Direction on Interest Rate on Deposits, 2016 has been revised. For Scheduled Commercial Banks (excluding RRBs) and Small Finance Banks, the threshold for single rupee term deposits classified as bulk deposits has been increased from ₹2 crore to ₹3 crore. For Local Area Banks, the threshold is now ₹1 crore, matching the existing rule for Regional Rural Banks.
What it means for you
Banks can now accept term deposits up to ₹3 crore (or ₹1 crore for LABs) without triggering bulk deposit pricing and reporting requirements. This gives lenders more flexibility in pricing deposits for mid-sized corporate and high-net-worth individual clients. It may also reduce compliance burden for deposits just above the old threshold.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update your bank's internal policies and system parameters to reflect the new bulk deposit threshold of ₹3 crore for SCBs/SFBs and ₹1 crore for LABs.
Communicate the revised definition to all deposit-taking branches and treasury teams immediately.
Review and amend any customer-facing documents, rate sheets, and product brochures that reference the old ₹2 crore threshold.
Ensure compliance with all other unchanged provisions of the Master Direction on Interest Rate on Deposits.
Who it affects
Scheduled Commercial Banks (excluding RRBs), Small Finance Banks, Local Area Banks, Deposit operations and treasury teams, Corporate and high-net-worth depositors
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 03:13 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this change affect the definition of bulk deposits for Regional Rural Banks?
No, the threshold for RRBs remains unchanged at ₹1 crore. The revision applies only to Scheduled Commercial Banks (excluding RRBs), Small Finance Banks, and Local Area Banks.
When does this revised definition come into effect?
The circular states that the instructions come into force with immediate effect from June 7, 2024.
Are there any other changes to the Master Direction on Interest Rate on Deposits besides the bulk deposit threshold?
No, the circular explicitly states that all other instructions in this regard remain unchanged. Only the definition of bulk deposit has been revised as detailed in the annex.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #113: DoR.SPE.REC.No.24/13.03.00/2024-2025 — "Amendment to Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016" dated June 7, 2024”
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/40
DoR.SPE.REC.No.24/13.03.00/2024-2025
June 07, 2024
All Scheduled Commercial Banks (excluding RRBs)
All Small Finance Banks
All Local Area Banks
Madam / Sir,
Amendment to Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016
Please refer to paragraph 3(a)(i) of the Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 dated March 03, 2016 , wherein the definition of “Bulk Deposits” has been prescribed.
2. On a review, it has been decided to revise the definition of bulk deposits for all Scheduled Commercial Banks (excluding RRBs), Small Finance Banks and Local Area Banks. The term “Bulk Deposit” would now mean:
Single Rupee term deposits of Rupees three crore and above for Scheduled Commercial Banks (excluding RRBs) and Small Finance Banks.
Single Rupee term deposits of Rupees one crore and above for Local Area Banks as applicable in case of Regional Rural Banks.
3. The relevant provisions of the Master Direction are being modified to reflect the changes as given in the Annex . All other instructions in this regard shall remain unchanged.
4. These instructions are issued in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949.
Applicability
5. These instructions shall be applicable to all Scheduled Commercial Banks (excluding RRBs), Small Finance Banks and Local Area Banks.
Commencement
These instructions shall come into force with immediate effect.
Yours faithfully,
(Latha Vishwanath)
Chief General Manager
Enclosure: As above
Annex
[Encl. to circular DoR.SPE.REC.No.24/13.03.00/2024-2025 dated June 07, 2024]
I. Amendments to Master Directions
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/40 · issued 07 Jun 2024. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12690&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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