The Reserve Bank of India (RBI) has revised rules governing interest rates on bank deposits, with the new directions coming into effect from October 1, 2026. The changes cover disclosure of deposit rates, uniform interest rates across branches and customers, and greater flexibility for banks to offer differential rates on bulk deposits of Rs 3 crore and above.
- RBI’s Revised FD Rules Take Effect October 1
- Bulk Deposit Defined As Rs 3 Crore And Above
- Banks Must Disclose Deposit Rates In Advance
- Uniform Interest Rates Across Bank Branches
- Banks Get Flexibility On Bulk Deposit Rates
- What The Changes Mean For FD Investors
- RBI’s Earlier Freedom On Deposit Rates
- New Rules Focus On Transparency And Bulk Deposits
- Saving Wealth, Preserving Life’s Purpose
- FAQs on FD New Rule From 1 October 2026
RBI’s Revised FD Rules Take Effect October 1
The Reserve Bank of India issued the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions, 2026 on July 30, 2026. The revised directions amend the existing framework relating to interest rates on rupee bulk deposits and disclosure of deposit interest rates and will come into effect from October 1, 2026.
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The RBI’s move gives banks greater flexibility in determining interest rates while introducing additional requirements on how deposit rates are disclosed. The central bank had issued draft amendments in June and subsequently considered stakeholder feedback before issuing the revised directions.
Bulk Deposit Defined As Rs 3 Crore And Above
A bulk deposit refers to a single-rupee term deposit of Rs 3 crore and above for commercial banks covered by the revised framework. RBI’s regulatory material also lists Rs 3 crore and above as the present bulk-deposit limit for scheduled commercial banks, excluding Regional Rural Banks.
Retail deposits below Rs 3 crore are generally treated separately from bulk deposits, with banks usually maintaining different pricing for retail and bulk deposits.
Banks Must Disclose Deposit Rates In Advance
Under the revised directions, interest rates payable on deposits, including bulk deposits, must strictly follow the schedule of interest rates disclosed in advance on the bank’s website. This means the rate applicable to a deposit must correspond with the rate schedule publicly disclosed by the bank.
For bulk deposits, the disclosure requirement will operate on every business day.
| Requirement | Revised rule |
| Bulk deposit threshold | Rs 3 crore and above |
| Website disclosure | Required in advance |
| Bulk-rate update | Every business day |
| Scheduled disclosure time | 10:00 am |
| Grace period | 10 minutes |
| Latest disclosure time | 10:10 am |
The RBI has specified that bulk-deposit interest rates must be disclosed on the bank’s website at 10:00 am, with a grace period of 10 minutes, meaning the disclosure must be made no later than 10:10 am on each business day.
Uniform Interest Rates Across Bank Branches
Another major change concerns uniformity in deposit rates. Banks will be required to offer interest rates on deposits, including bulk deposits, uniformly across all branches and all customers.
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The revised framework also states that there should be no discrimination in interest paid between deposits of similar amounts accepted on the same date at any of the bank’s offices.
This provision is aimed at ensuring that deposits with similar amounts and accepted on the same date are not given different interest treatment merely because they were placed at different offices or by different customers.
Banks Get Flexibility On Bulk Deposit Rates
While the revised rules require uniformity, banks have also been given flexibility to offer differential interest rates on bulk deposits.
The RBI has permitted banks to consider the differential run-off rates applicable to deposits or unsecured wholesale funding under the Liquidity Coverage Ratio (LCR) framework when offering differential rates on bulk deposits. The provision applies to domestic rupee deposits as well as rupee deposits of non-residents.
The LCR framework relates to banks maintaining sufficient high-quality liquid assets to meet cash outflows during a period of stress.
What The Changes Mean For FD Investors
The revised provisions are mainly focused on bulk deposits of Rs 3 crore and above, meaning the direct impact on most retail FD investors is expected to remain limited. The changes nevertheless introduce greater transparency and uniformity in how banks disclose and apply deposit interest rates.
The changes do not mean that every FD will receive the same interest rate. Banks can continue to have different rates based on the applicable deposit category and terms, while the revised framework sets requirements for uniform treatment of similar deposits and permits differential pricing for bulk deposits under the specified LCR framework.
RBI’s Earlier Freedom On Deposit Rates
RBI had given commercial banks the freedom, with effect from October 22, 1997, to fix their own interest rates on domestic fixed deposits of various maturities, subject to the applicable RBI instructions.
The latest amendments revise the framework around deposit-rate disclosure, uniformity in pricing and the treatment of bulk deposits while retaining flexibility for banks in the specific circumstances provided under the revised directions.
New Rules Focus On Transparency And Bulk Deposits
From October 1, 2026, banks will have to follow the revised disclosure and pricing framework for deposits. Bulk-deposit rates will be published on business days by the specified morning deadline, while similar deposits accepted on the same date will receive uniform interest treatment. Banks will also have flexibility to differentiate bulk-deposit rates under the LCR framework.
Saving Wealth, Preserving Life’s Purpose
Financial savings are often kept aside so that they can support us when an emergency or difficult situation arises. In a similar world the teachings of Tatvdarshi Sant Rampal Ji Maharaj draw attention to another form of limited wealth: the breaths of human life. His teachings emphasise that while people remain deeply concerned about protecting material wealth, the precious breaths of life are continuously being spent and should instead be used in remembrance and devotion.
Sant Garibdas Ji’s Vani describes the value of Satnam through the verse:
“Satnam palde rang hori ho, kabhu naa ho akaaj, Ram rang hori ho,”.
From this perspective, the limited time of human life becomes significant. For those seeking spiritual knowledge, His teachings present Satbhakti as the means of building spiritual wealth that is considered more enduring than material possessions.
FAQs on FD New Rule From 1 October 2026
1. When will the new RBI FD rules take effect?
The revised RBI directions on deposit interest rates will come into effect from October 1, 2026.
2. What is a bulk deposit under the new rules?
For commercial banks, a bulk deposit means a single-rupee term deposit of Rs 3 crore and above.
3. When must banks update bulk deposit rates?
Banks must disclose bulk deposit interest rates at 10:00 am on every business day, with a latest deadline of 10:10 am.
4. Will banks offer uniform FD interest rates?
Rates must be uniform across branches and customers for similar amounts accepted on the same date, subject to the revised provisions.
5. Can banks offer different rates on bulk deposits?
Yes. Banks can offer differential bulk-deposit rates by considering applicable differential run-off rates under the LCR framework.
