New Delhi, September 29 (TNA) The Reserve Bank of India’s revised rules on fixed deposit interest rates will come into effect from October 1, 2026. The changes are aimed at bringing greater transparency and uniformity to the way banks disclose and offer interest rates on deposits, particularly bulk fixed deposits.
Under the new framework, banks will not be allowed to offer different interest rates for similar deposits merely because they are booked at different branches. For deposits of a similar amount accepted on the same day, the interest rate will have to remain uniform across all branches and for all customers.
Rates to Be Published in Advance
Banks will be required to publish their deposit interest-rate schedules on their official websites before offering the rates to customers. The interest paid on a deposit must strictly match the rate disclosed in the published schedule.
This provision is expected to make it easier for depositors to compare interest rates and verify whether the rate offered by a bank is in line with its publicly available schedule.
Daily Disclosure for Bulk Deposits
The revised rules introduce specific disclosure requirements for bulk deposits. Banks will have to publish the applicable interest rates for bulk deposits on their websites by 10 am on every business day. A grace period of 10 minutes will be available, allowing publication until 10:10 am.
The rule is intended to ensure that large depositors have access to timely information and that banks do not offer undisclosed or preferential rates for similar deposits.
Greater Flexibility in Bulk Deposit Pricing
While interest rates for similar deposits will have to be uniform, banks will have greater flexibility to price bulk deposits based on their liquidity requirements and risks under the Liquidity Coverage Ratio framework. The revised provisions also cover rupee deposits from non-residents.
The new rules are not a direction to banks to increase or reduce their fixed deposit rates. Instead, they change the manner in which rates are determined, disclosed and applied.
Rules Cover Several Banks
The revised framework will apply to commercial banks, small finance banks, regional rural banks, local area banks, payment banks and urban cooperative banks. For ordinary retail depositors, the main impact will be greater clarity and equal treatment across branches. Customers will be able to check the applicable rate online and ensure that the interest promised at the time of opening the FD is the same as the rate disclosed by the bank.
What Depositors Should Check
From October 1, FD investors should:
• Check the bank’s official website before booking a fixed deposit.
• Verify the applicable interest rate and tenure.
• Confirm that the rate is the same across branches for a similar deposit accepted on the same day.
• Retain the deposit receipt and other documents issued by the bank.
• Check the applicable bulk-deposit rate online if investing a large amount.
• Compare rates and terms across banks before investing.
Existing fixed deposits will generally continue according to the terms and interest rate applicable when they were opened. The new provisions primarily affect how banks disclose and apply deposit rates on and after October 1, 2026.