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-WTO Row

REUTERS SHOWCASE

Market Eye

Market Eye

Nifty falls most in nearly 3-1/2 weeks; Sensex down over 400 points  Full Article 

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Reviving Infosys

Reviving Infosys

CEO Sikka says to improve business with new growth avenues  Full Article 

Outlook Slashed

Outlook Slashed

ArcelorMittal cuts outlook as ore prices hit mining  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China, Asian factory growth gathers pace; Europe falters  Full Article 

Car Launch Ahead

Car Launch Ahead

Tata Motors bets on new sedan to revive weak India sales.  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Reuters India Mobile

Reuters India Mobile

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