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9 Banks Revise Fixed Deposit Rates After New RBI Rule: Up to 9.1% Interest

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Mitali

Finance Professional

44644 Points Posted on 14 June 2024

The RBI has proposed a change in the classification of bulk fixed deposits, raising the threshold from Rs 2 crore to Rs 3 crore. This means deposits between Rs 2 crore and Rs 3 crore will now be considered retail deposits, which typically have different interest rates compared to bulk deposits.

Several banks have updated their fixed deposit interest rates and the retail deposit amount from Rs 2 crore to Rs 3 crore accordingly:

State Bank of India (SBI): Effective May 15, 2024.

HDFC Bank: Effective June 12, 2024.

Utkarsh SFB: Effective June 7, 2024.

Bank of Baroda: Effective June 12, 2024.

Punjab National Bank (PNB): Effective June 10, 2024.

Axis Bank: Effective June 8, 2024.

Yes Bank: Effective June 8, 2024.

DCB Bank: Effective June 7, 2024.

RBL Bank: Effective June 8, 2024.

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Quick Summary

Following a recent RBI directive to reclassify bulk fixed deposits, raising the threshold from Rs 2 crore to Rs 3 crore, nine banks have updated their interest rates. This change means deposits between Rs 2 crore and Rs 3 crore are now considered retail deposits, potentially affecting the interest earned. Several major banks, including SBI, HDFC Bank, and PNB, have implemented these revised rates, with some offering up to 9.1% interest.