RBI Tightens Rules On Banks' Large-Value Deposits
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25 Jan,2013 16:21 IST

RBI Tightens Rules On Banks' Large-Value Deposits

Banks can charge different rates of interest only on bulk deposits of above Rs 1 cr, higher than previous limit of Rs 15 lakhs
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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 Rs 1 crore, higher than previous limit of RS 15 lakhs, the central bank said in a circular on 24 January.

"For deposits below Rs 1 crore, 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 Rs 1 crore.

The revised guidelines will be applicable from 1 April.

(Reuters)

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