RBI tightens rules on banks' large-value deposits

MUMBAI Thu Jan 24, 2013 10:59pm IST

1 of 2. Kashmiri people perform transactions at a bank in Srinagar August 19, 2008.

Credit: Reuters/Fayaz Kabli/Files

MUMBAI (Reuters) - The Reserve Bank of India (RBI) tightened the rules of offering differential interest rates on large size term deposits and also said banks can stop large depositors from premature withdrawal of their money.

Banks can charge different rates of interest only on bulk deposits of above 10 million rupees, higher than previous limit of 1.5 million rupees, the central bank said in a circular on Thursday.

"For deposits below 1 crore (10 million rupees), the same rate will apply for deposits of the same maturity," the RBI said.

The RBI said banks can disallow premature withdrawal of deposits of over 10 million rupees.

The revised guidelines will be applicable from April 1.

($1 = 53.6850 rupees)

(Reporting by Suvashree Dey Choudhury; Editing by Gopakumar Warrier)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-Nepal Ties

REUTERS SHOWCASE

Tackling Food Prices

Tackling Food Prices

India to free up extra 10 million tonne wheat in open market  Full Article 

Facebook Results

Facebook Results

Facebook beats Wall Street targets, stock hits record high  Full Article 

GM Recall

GM Recall

GM recalls 717,950 vehicles in U.S., not for ignition switches  Full Article 

Hyundai Motor Results

Hyundai Motor Results

Hyundai Motor Q2 profit slips as firmer won, U.S. discounts hurt  Full Article 

Nokia Results

Nokia Results

Nokia raises networks outlook after Q2 profit beats estimates  Full Article 

Factory Sector

Factory Sector

China July HSBC flash PMI at 18-month high of 52.0   Full Article 

Breakingviews

Breakingviews

Apple winds up earnings hope for new gadgets  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage