CHANGE IN BULK DEPOSIT AMOUNT

Last week, the Reserve Bank of India (RBI) changed the definition of bulk deposit. Here is what it means: ₹2 crore and above: The RBI has revised the definition of bulk deposits as single-rupee deposits of ₹2 crore and above, instead of ₹1 crore and above

Differential interest rate: Sofar, deposits up to ₹1 crore had differential interest rate. Now as the threshold has changed, interest rate on fixed deposits up to ₹2 crore will be different from deposits over ₹2 crore

Impact on your FD: Considering that bankers are going to continue relying on bank FDS, you are unlikely to see a change in rate. In case of bulk deposit, rates will change due to change in definition.