ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!


    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 тВ╣50 lakh Correct Answer Incorrect Answer
    B тВ╣75 lakh Correct Answer Incorrect Answer
    C тВ╣1 crore Correct Answer Incorrect Answer
    D тВ╣1.5 crore Correct Answer Incorrect Answer
    E тВ╣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 тВ╣15 lakh to тВ╣1 crore. This means banks will now have to let retail depositors withdraw fixed deposits below тВ╣1 crore. Typically, banks offer higher rates on non-callable deposits тАУ those that cannot be withdrawn before maturity.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 тВ╣15 lakh and below тВ╣2 crore, while the rate on a callable counterpart below тВ╣2 crore is 6.8%.

    Practice Next
    More Beepedia Questions
    ask-question