The Reserve Bank of India (RBI) on October 26, 2023, issued a notification regarding the update to the Reserve Bank of India Master Direction (Interest Rate on Deposits) Directions, 2016
The following has been updated namely: -
• In Clause 3 which states “definitions” the term “Bulk Deposit” shall now include the following namely: -
Single Rupee term deposits of Rupees one crore and above for RRBs
• In Clause 7 which specifies “Interest Rates on Domestic Term Deposits” has been modified as follows namely: -
All term deposits accepted from individuals (held singly or jointly) for Rupees one crore and below shall have premature-withdrawal-facility.
• In clause 15 which states “interest rates on Rupee Deposits-Non-Residents” the sub-clause (iii) has been modified as follows namely: -
(iii) Non-availability of Premature withdrawal option:
Banks shall have the freedom to offer NRE / NRO term deposits without premature withdrawal option, provided that all NRE / NRO term deposits accepted from individuals (held singly or jointly) for an amount of Rupees one crore and below shall have premature-withdrawal-facility.
[Notification No. RBI/DBR/2015-16/19 Master Direction DBR.Dir.No.84/13.03.00/2015-16]
