RBI provides banks greater flexibility to determine bulk deposit interest rates; changes effective from October 1, 2026

The Reserve Bank of India (RBI) has revised the rules governing interest rates on bank deposits, introducing new disclosure requirements for bulk deposits and giving banks greater flexibility in determining their interest rates. Here's what the revised rules mean for banks and depositors.

The revised directions will come into force from October 1, 2026. Note that a bulk deposit means single rupee term deposit of Rs 3 crore and above.

Banks generally offer different fixed deposit (FD) interest rates depending on the size of the deposit. Retail deposits, which are below Rs 3 crore, usually have one set of interest rates, while bulk deposits of Rs 3 crore and above are priced separately.

RBI allows differential rates for bulk deposits

One of the biggest changes as per the RBI’s circular is that while maintaining uniformity for similar deposits, banks can offer differential interest rates on bulk deposits. Banks can do so by considering the differential run-off rate applicable to deposits or unsecured wholesale funding under the LCR framework applicable to domestic deposits and rupee deposits of Non-Residents. The RBI’s new rule, thus, introduces flexibility for banks in pricing bulk deposits.

Uniform interest rates for same date similar deposits

The RBI has also reiterated that banks must offer uniform interest rates for deposits of the same amount accepted on the same date. The rates should remain consistent across all branches for deposits with identical characteristics.
“There shall be no discrimination in the matter of interest paid on the deposits, between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices,” as per a RBI statement.

Banks must disclose bulk deposit rates every business day

Banks will have to publish the interest rates applicable to bulk deposits on their websites every business day. The RBI has specified that these rates must be disclosed at 10:00 am, with a maximum grace period of 10 minutes.
The central bank said that interest payable on all deposits, including bulk deposits, must strictly follow the schedule of rates disclosed in advance on the bank's website.

When will the new rules apply?

Revised RBI directions will come into effect on October 1, 2026. From that date, commercial banks will be required to comply with the new disclosure timelines and the revised framework governing interest rates on bulk deposits.