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Since privileges are obtained after crossing respective thresholds, I was wondering do they also get taken away if reputations fall back, especially after awarding bounty, to a level below the threshold.

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    $\begingroup$ If you have a question which applies across the network the answer can often be found somewhere on Meta Stack Exchange. $\endgroup$ – mdewey Oct 27 '20 at 14:07
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Yes, you'll lose privileges. See the Help Center article about setting bounties:

  • If your new reputation brings you below the requirement for any privileges, you will lose access to those privileges.
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    $\begingroup$ It may seem unfair that having earned the respect of a community you may lose privileges by offering a bounty. But it seems to be a general rule that thresholds work this way. $\endgroup$ – Nick Cox Oct 27 '20 at 13:14

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