FD interest rate rules change from October 1: What depositors need to know

The RBI's revised rules for bulk fixed deposit (FD) interest rates come into effect from October 1, 2026. Banks will have to disclose applicable rates in advance and publish bulk deposit rates daily.

The rules apply to commercial banks, small finance banks, RRBs, local area banks, payment banks, and urban cooperative banks. A bulk deposit is a single-rupee term deposit of Rs 3 crore and above.

Banks must publish applicable bulk deposit rates by 10 am on every working day. A 10- minute grace period is allowed, so rates can be updated up to 10:10 am. Banks will have to follow the rates displayed on their websites while paying interest on deposits.

Banks cannot offer different rates for similar bulk deposits simply because the deposit is booked at another branch. The same rate must apply across branches for similar deposits accepted on the same day.

Banks can offer different interest rates on bulk deposits based on the run-off rate applicable under the Liquidity Coverage Ratio (LCR) framework. This allows banks to consider how quickly different types of deposits or unsecured wholesale funding may leave the bank when setting rates.

The same LCR-based flexibility will apply to certain rupee deposits held by non- residents. Banks can offer different rates on bulk NRI rupee deposits based on the applicable LCR run-off rate. The revised rules therefore cover certain domestic and non- resident bulk deposits.