The Reserve Bank of India (RBI) has increased the threshold for bulk fixed deposits for Scheduled Commercial Banks and Small Finance Banks to ₹3 crore. What was the previous threshold for bulk deposits before this revision?

Correct option is C

The previous threshold for bulk fixed deposits was ₹2 crore, which has now been increased to ₹3 crore by the RBI.
· Bulk Deposits: These deposits earn slightly higher interest rates as banks use them for managing liquidity.
· Revised Definition: Bulk deposits are now defined as "Single Rupee term deposits of ₹3 crore and above" for Scheduled Commercial Banks (excluding RRBs) and Small Finance Banks.
· Local Area Banks: The bulk deposit limit for Local Area Banks and Regional Rural Banks is set at ₹1 crore.
· RBI's Policy Update: This revision was announced during the bi-monthly monetary policy review in June 2024 to streamline the classification of deposits.