New RBI Rules For Fixed Deposits: Banks Can Vary Interest Rates From October 1

Mumbai, Aug 3: The Reserve Bank of India (RBI) has revised rules governing interest rates on bulk fixed deposits, giving banks greater flexibility to offer different rates based on their liquidity requirements, while mandating daily disclosure of applicable rates from October 1, 2026.

Under the revised framework, banks will be allowed to offer differential interest rates on bulk deposits by considering the applicable run-off rates for deposits or unsecured wholesale funding under the Liquidity Coverage Ratio (LCR) framework.

The new rules, issued on July 30, will come into effect from October 1. The implementation timeline was extended after banks sought additional time to make necessary system changes.

A bulk deposit refers to a large-value single-rupee term deposit, generally made by companies, institutions, trusts or high-net-worth individuals. For most commercial banks, the threshold for bulk deposits is Rs 3 crore.

From October 1, banks will also be required to publish applicable bulk deposit interest rates on their websites every business day during business hours. The rates must be disclosed at 10 am, with a 10-minute grace period, and no later than 10:10 am.

The RBI said interest rates on deposits, including bulk deposits, must be disclosed in advance and remain uniform across all branches and customers for deposits of similar amounts accepted on the same date.

For retail FD investors, however, the changes are unlikely to have any significant impact. The revised framework does not alter rules governing regular retail FD rates, tenures, premature withdrawals, senior citizen benefits or deposit insurance coverage.

The changes are primarily aimed at giving banks greater flexibility in managing large deposits while improving transparency for bulk depositors. (Agencies)