Home / Business and Economy / RBI Overhauls FD Rules: Big Changes from Oct 1
RBI Overhauls FD Rules: Big Changes from Oct 1
3 Aug
Summary
- Interest rates on deposits must be uniform across all branches.
- Banks must disclose full deposit interest rates on websites daily.
- Banks gain flexibility in pricing bulk deposits based on LCR.
The Reserve Bank of India (RBI) is set to introduce significant changes to fixed deposit interest rate regulations starting October 1, 2026. These new directives aim to foster greater transparency for depositors and provide commercial banks with enhanced operational flexibility.
A key update mandates that interest rates offered on retail deposits, including bulk deposits, must be uniform across all branches and customers for similar deposit amounts accepted on the same date. This measure ensures equitable treatment and eliminates discrepancies in rate offerings.
Furthermore, banks are now required to publish their complete deposit interest rate schedules on their official websites. A stringent daily disclosure rule applies to bulk deposit rates, which must be uploaded by 10:00 am each business day.
Financial institutions will benefit from increased flexibility in pricing bulk deposits. They can now offer differential rates by factoring in the Liquidity Coverage Ratio (LCR) framework, specifically considering applicable 'run-off rates' for deposits and unsecured wholesale funding.
These revised rules, formally known as the Reserve Bank of India (Commercial Banks - Interest Rate on Deposits) Second Amendment Directions, 2026, were developed after considering public comments on a draft framework. The move follows supervisory attention on inconsistent practices regarding large-value deposits.
Industry analysts anticipate these changes will lead to a more mature and transparent banking sector. The RBI's intervention aims to balance depositor fairness with the need for banks to manage their liabilities effectively in a dynamic financial environment.
