Indian banks to seek RBI approval for raising bulk deposits, sources say
MUMBAI, Jan 20 (Reuters) – Indian banks will approach the Reserve Bank of India for approval to raise bulk deposits for up to three years compared to the current one year cap, three sources familiar with the discussions said on Tuesday. The suggestion was discussed between bank treasury executives and a market representative body last week, the sources said. The plan to request this change in regulation comes against the backdrop of weak deposit growth for banks and sporadic tightness in banking system liquidity. Banks raise bulk deposits via certificates of deposit (CDs) for a tenor of upto one year