New Enroll in RBI Grade B New Batch - Starts on May 21

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

    Solution

    The "Review of Instructions on Bulk Deposits for Urban Co-operative Banks" requires UCBs to maintain a CRAR of at least 9% and obtain board approval if they wish to offer interest rates on bulk deposits exceeding the average rate.

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