Noida, Sep 29 (APAC Media): The Reserve Bank of India (RBI) is set to introduce revised rules for fixed deposits from October 1, 2026. The new provisions are mainly focused on bulk fixed deposits, bringing changes in the way banks disclose interest rates and offer rates to customers.
While the rules are particularly relevant for high-value depositors, regular FD investors should also understand what is changing.
- New rules come into effect on October 1.
The RBI announced the revised provisions through its Second Amendment Directions, 2026. The changes are scheduled to become effective from October 1. The objective is to bring greater transparency and consistency to interest-rate practices for bulk deposits.
- Banks must publish bulk FD rates daily.
One of the key changes is related to the disclosure of interest rates. From October 1, banks will be required to publish the applicable interest rates for bulk deposits on their websites by 10 am on every working day.
Banks will have an additional 10-minute window to complete the update, meaning the rates can be published by 10:10 am.
- What counts as a bulk deposit?
Under the revised framework, a single rupee term deposit of ₹3 crore or more is generally treated as a bulk deposit for scheduled commercial banks.
Such deposits may have interest rates that differ from those offered on regular retail fixed deposits.
- Uniform rates for similar bulk deposits
The revised rules also require banks to follow greater uniformity when determining interest rates. For similar bulk deposits accepted on the same day, banks are expected to offer the same interest rate across their branches and to customers in the same category.
This is intended to make the process more transparent for large depositors.
- Banks can still offer differential rates.
According to the RBI, the revised framework does not completely remove banks’ flexibility in setting interest rates on bulk deposits. Banks may offer differential interest rates on certain eligible bulk deposits based on factors linked to their Liquidity Coverage Ratio (LCR) and applicable deposit run-off rates.
The RBI said this provision allows banks to take liquidity requirements into account while determining interest rates for eligible deposits.
- Impact on NRI deposits
The revised provisions will also apply to certain bulk rupee deposits held by non-residents. Under the new framework, banks may factor in the applicable Liquidity Coverage Ratio (LCR) run-off rates while determining interest rates for eligible deposits.
- What regular FD investors should know
For most retail customers investing smaller amounts, there is no major change requiring immediate action. Depositors placing amounts such as ₹1 lakh, ₹5 lakh or ₹25 lakh in conventional fixed deposits are generally outside the bulk-deposit threshold.
Therefore, the daily 10 am disclosure requirement is primarily relevant to customers dealing with deposits of ₹3 crore or more.
- What depositors should do?
Large depositors should check their bank’s website for the latest bulk-deposit rates before booking an FD. They should also compare available rates, confirm the applicable rate at the time of booking and carefully check the FD receipt and other documents.
Overall, the RBI revised framework seeks to improve transparency in bulk fixed deposits while allowing banks some flexibility based on liquidity requirements.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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