RBI's new FD rules for small finance banks: 3 big changes from October 1

The new rules, issued under the Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Second Amendment Directions, 2026, will come into effect from October 1.

In Short

• New RBI rules for small finance bank FDs start from October 1, 2026
• Banks must publish bulk FD interest rates daily by 10 am on their websites
• FD interest rates to be displayed before deposit acceptance for transparency

If you have a fixed deposit with a small finance bank or are planning to open one, a few new rules will soon come into effect. The Reserve Bank of India (RBI) has introduced fresh guidelines to make FD interest rates more transparent and ensure customers are treated fairly.

The new rules, issued under the Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Second Amendment Directions, 2026, will come into effect from October 1.

Here are three key changes FD investors should know.

BANKS MUST PUBLISH BULK FD RATES EVERY MORNING

One of the biggest changes is that small finance banks will now have to publish interest rates for bulk deposits on their websites every business day by 10 am. They will get a 10-minute grace period to update the rates until 10.10 am.

A bulk deposit refers to a single rupee term deposit of Rs 3 crore or more in the case of scheduled commercial banks and small finance banks.

These deposits are usually made by companies, large businesses, trusts and high-net-worth individuals who park large sums with banks for a fixed period to earn interest.

FD INTEREST RATES MUST BE PUBLISHED IN ADVANCE

The RBI has also directed small finance banks to publish their fixed deposit interest rate schedule before accepting deposits.

Banks will have to offer interest rates exactly as displayed on their websites for both regular and bulk deposits. This is expected to make it easier for customers to compare FD rates before investing.

SAME FD RATES FOR ALL CUSTOMERS

The central bank has made it clear that small finance banks cannot offer different interest rates to different customers for deposits of the same amount accepted on the same day.

The same rates must apply across all branches, ensuring that every depositor is treated equally, regardless of where they open the fixed deposit.

However, this rule does not apply to bulk deposits. Banks can offer different interest rates on bulk deposits, provided the criteria are decided and disclosed in advance. Such differences may be based on factors like deposit stability and liquidity requirements under the RBI's regulatory framework. The same flexibility also applies to bulk deposits accepted from non-resident customers.

The RBI said these changes are aimed at bringing greater transparency, consistency and fairness to the way small finance banks offer interest rates on fixed deposits.

- Ends