• Banks must publish their deposit interest rate schedule on their websites in advance, and they must pay interest strictly according to the published schedule
• Banks must offer the same interest rate across all branches for deposits of a similar account accepted on the same day
• Banks must set differential interest rates on bulk deposits, based on run-off rates that apply under the Liquidity Coverage Ratio (LCR) framework
• Banks must upload the applicable interest rates for bulk deposits on their websites by 10.00 am on every business day, with a grace period until 10.10 am

The first two requirements cover deposits generally. The daily disclosure deadline and the new liquidity-based pricing flexibility are specifically relevant to bulk deposits. RBI has not prescribed the actual rate that banks must offer. Banks will continue to decide their deposit rates based on market conditions, funding requirements, liquidity and their board-approved policies.

How the New FD Rules Improve Rate Transparency?

Under the revised rules, interest paid on deposits must strictly follow the rate schedule disclosed on the bank's website. A branch cannot offer an unpublished rate or independently change the rate for a particular customer. The rate must also be uniform across all branches and customers for similar deposits accepted on the same date. This means customers should not receive different rates simply because they approach different branches of the same bank.

Banks must disclose their general deposit-rate schedules in advance. For bulk deposits, the applicable rates must be published at 10:00 am on each business day, with a grace period of 10 minutes. Therefore, the rates must be available by 10:10 am at the latest. This would make it easier for customers to verify the applicable rate before placing a deposit.

Why Bulk-Deposit Rates May Still be Different?

The RBI now allows banks to offer differential interest rates on bulk deposits, based on the different run-off rates that apply under the Liquidity Coverage Ratio (LCR) framework. The RBI has extended the same flexibility to rupee deposits from non-residents.

The RBI aims to give banks greater flexibility in pricing rupee bulk deposits while ensuring greater transparency and uniformity in how banks disclose deposit interest rates.

What the Changes Mean for Regular FD Investors?

Retail FD investors should not expect an automatic rate increase or reduction on 1 October 2026. Banks will continue to revise their rates independently according to funding costs, liquidity needs, internal policy, and market conditions. The main benefit for regular investors is greater clarity and consistency.

The new rules do not change the contracted interest rate on an existing FD. Such deposits will continue according to the terms agreed upon when they were opened.

Final Thoughts

RBI's revised framework is primarily a transparency and consistency measure. It does not guarantee higher FD returns from 1 October 2026. Regular depositors should receive clearer information and uniform treatment across branches. Bulk-deposit rates may differ based on liquidity characteristics, but banks must disclose those rates and apply them according to their published schedules.

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