Question

Under the revised bulk deposit guidelines for UCBs, Tier 3 and Tier 4 UCBs are allowed to raise bulk deposits only above a specific threshold. What conditions must be met by UCBs for offering interest rates on bulk deposits that exceed the average interest rate on term deposits?

A The interest rate must be pre-approved by the RBI for all bulk deposits above ₹1 crore.
B UCBs can offer interest rates up to 2% higher than the average rate for retail deposits, subject to board approval.
C UCBs must maintain a minimum CRAR of 9% and obtain the board’s approval for interest rates exceeding the average.
D UCBs must consult with their Lead Bank before setting higher rates for bulk deposits.
E UCBs are required to report all bulk deposit rates exceeding the standard to the RBI within 30 days.
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