\r\nAmendment to Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016

The Reserve Bank of India has amended the Master Direction on Interest Rate on Deposits, revising the definition of "Bulk Deposits" for Scheduled Commercial Banks (excluding RRBs), Small Finance Banks, and Local Area Banks. \r

Previously, single rupee term deposits of Rs. 2 crore and above were considered bulk deposits for certain banks, but now the threshold is raised to Rs. 3 crore for Scheduled Commercial Banks and Small Finance Banks, while for Local Area Banks, it remains at Rs. 1 crore, aligning with Regional Rural Banks. \r

These changes, effective immediately, aim to regulate deposit classification and management in the banking sector. The amendment, issued under Section 35A of the Banking Regulation Act, 1949, applies uniformly to the specified banks.