What is the revised threshold for bulk fixed deposits set by the Reserve Bank of India?

ANS:C - Rs 3 Crore

The Reserve Bank of India (RBI) has revised the threshold for bulk fixed deposits to Rs. 2 crore. This adjustment reflects the RBI's ongoing efforts to align financial regulations with current market conditions and to enhance the overall stability and transparency of the banking sector. Previously, the threshold for bulk fixed deposits, which are typically large deposits made by institutions or high-net-worth individuals, was set lower. By increasing the threshold to Rs. 2 crore, the RBI aims to streamline regulatory processes and reduce the administrative burden on banks when managing and reporting large deposit accounts. This change is expected to impact how banks classify and manage bulk deposits, influencing their liquidity management and deposit mobilization strategies. Additionally, the revised threshold aligns with the broader goal of ensuring that regulatory measures are proportionate to the scale and impact of the financial transactions involved. The move also reflects the RBI's approach to fostering a more dynamic and resilient banking environment by adapting regulatory standards to evolving financial practices. The adjustment in the bulk deposit threshold underscores the RBI's role in maintaining financial stability while supporting the efficient operation of the banking system.