RBI Update:The eserve Bank of India (RBI) on Friday announced to increase the limit of bulk term deposits from the current Rs 2 crore to Rs 3 crore. Bulk term deposits offer slightly higher interest than retail term deposits, as banks offer different rates as part of their cash management process.
Now single rupee term deposits up to Rs 2 crore with scheduled commercial banks (excluding regional rural banks) and small finance banks (SFBs) will be part of retail term deposits.
Proposal to revise definition of bulk deposits According to reports, RBI Governor Shaktikanta Das while announcing the bi-monthly policy on Friday said that regarding the review of bulk deposit limit, it is proposed to revise the definition of bulk deposits as single rupee term deposits of Rs 3 crore and above for scheduled commercial banks (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 the case of RRBs (Regional Rural Banks). Proposal to rationalise FEMA guidelines
To ease business, RBI has also proposed to rationalise the guidelines for export and import of goods and services under the Foreign Exchange Management Act (FEMA) 1999.
It is proposed to rationalise the existing FEMA guidelines on export and import of goods and services in line with the changing situation of international trade and progressive liberalisation of foreign exchange regulation, Das said.
This will promote ease of doing business, he said. Authorised dealer banks will get more combative capability in operations. Draft guidelines will be issued soon for stakeholders’ feedback.
Digital Payment Intelligence Platform to be set up
Regarding promotion of digital payments, Das said that it is proposed to set up a Digital Payment Intelligence Platform for sharing network level intelligence and data on a real-time basis in the digital payment environment.
However, he added that a system-wide approach is required in view of the increasing cases of digital payment fraud. Therefore, it is proposed to set up a Digital Payment Intelligence Platform for sharing network level intelligence and data on a real-time basis in the digital payment environment.
