MUMBAI, Jan 24 (Reuters) - The Reserve Bank of India
tightened the rules of offering differential interest rates on
large size term deposits and also said banks can stop large
depositors from premature withdrawal of their money.
Banks can charge different rates of interest only on bulk
deposits of above 10 million rupees ($186,300), higher than
previous limit of 1.5 million rupees, the central bank said in a
circular on Thursday.
"For deposits below 1 crore (10 million rupees), the same
rate will apply for deposits of the same maturity," the RBI
The RBI said banks can disallow premature withdrawal of
deposits of over 10 million rupees.
The revised guidelines will be applicable from April 1.
($1 = 53.6850 Indian rupees)
(Reporting by Suvashree Dey Choudhury; Editing by Gopakumar