Question

    What is the proposed increase in the minimum amount for offering non-callable term deposits (TDs) based on the recent announcement by RBI?

    A ₹50 lakh Correct Answer Incorrect Answer
    B ₹75 lakh Correct Answer Incorrect Answer
    C ₹1 crore Correct Answer Incorrect Answer
    D ₹1.5 crore Correct Answer Incorrect Answer
    E ₹2 crore Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) increased the threshold above which banks can offer retail deposits without premature withdrawal from ₹15 lakh to ₹1 crore. This means banks will now have to let retail depositors withdraw fixed deposits below ₹1 crore. Typically, banks offer higher rates on non-callable deposits – those that cannot be withdrawn before maturity. For instance, State Bank of India (SBI) offers 7.1% on a one-year, non-callable term deposit of over ₹15 lakh and below ₹2 crore, while the rate on a callable counterpart below ₹2 crore is 6.8%.

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