Home News News and Press Release Month 9 2012 2012 (9) This
Press Information Bureau Government of India Ministry of Finance
06-September-2012 17:37 IST
Money Deposited through Bulk Deposits
Reserve Bank of India (RBI) has informed that there is no standard definition of bulk deposits. Bank group and size of time deposit – wise amount as at end March 2012 is furnished below:
Bank Name
Size wise distribution of Time Deposit of Banks at end Mar-12
Above Rs. 15 Lakh
Total Outstanding –
Rs. Crore
Total Deposits
*
Deposits of Size above Rs. 15 Lakh as % of Total Deposits
Nationalized Banks
1,556,672
3,366,202
46.2
SBI Group
366,068
1,343,591
27.2
Old Private Banks
121,067
315,918
38.3
New Private Banks
363,725
833,980
43.6
Foreign Banks
117,195
276,899
42.3
All Banks
2,524,728
6,136,590
41.1
*comprise CASA, time deposits, bank deposits and CDs
These deposits carry higher rate of interest than the amount deposited in Current Account and Saving Account (CASA). Further, banks are permitted at their discretion to offer differential rates of interest on single term deposits of Rs. 15.00 lakh and above, subject to the condition that the interest rates payable on deposits including deposits are disclosed in advance to the depositor and not subject to negotiation between the depositor and the bank.
Government has issued an advisory to public sector banks on 06.07.2012 to reduce their high cost deposits which is available at website www.financialservices.gov.in. Further, RBI has also issued a circular dated August 14, 2012, to have in place a Board approved transparent policy on pricing of liabilities and they should ensure that variation in interest rates on single term deposit of Rs.15.00 lakh and above and other term deposits are minimal.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.
*****
DSM/RS/Hb
9911796707
