The Reserve Bank of India (RBI) is introducing revised rules for the interest rates and disclosure of bulk fixed deposits (FDs) from October 1, 2026. The changes are aimed at making bulk deposit pricing more transparent while giving banks flexibility to factor in their liquidity requirements.
The revised framework focuses mainly on large deposits of ₹3 crore and above. It sets out when banks must publish bulk deposit rates, requires consistency in rates for similar deposits and allows certain differences based on the liquidity treatment of deposits.
Banks Must Publish Bulk FD Rates Every Working Day
Under the new framework, banks will have to disclose the interest rates applicable to bulk deposits on their websites every business day. The rate is to be published at 10 am, with a 10-minute grace period, meaning the latest disclosure must be available by 10:10 am.
Banks will also have to pay interest according to the deposit rates disclosed in advance on their websites. This makes the published rate an important reference for customers looking to place large deposits.
A bulk deposit refers to a single rupee term deposit of ₹3 crore or more. Such deposits may carry different rates from those applicable to regular retail FDs.
Same Rates for Similar Bulk Deposits Across Branches
The revised rules require banks to maintain uniform interest rates across their branches for deposits of similar amounts accepted on the same date. Banks cannot discriminate between customers or branches when the deposits have similar characteristics.
This means a customer placing a qualifying bulk deposit should not receive a different rate simply because the deposit is booked at another branch of the same bank.
However, the RBI has also introduced flexibility for banks to offer different rates when deposits have different liquidity characteristics under the Liquidity Coverage Ratio (LCR) framework.
LCR Rules Allow Some Flexibility in Bulk FD Rates
The revised framework permits banks to consider the applicable run-off rate for deposits or unsecured wholesale funding under the LCR framework while deciding interest rates on bulk deposits.
The LCR framework is designed to assess the potential outflow of funds from a bank during a period of liquidity stress. Because different categories of deposits can have different run-off characteristics, banks will be able to take these differences into account when pricing eligible bulk deposits.
The rule therefore combines two principles: similar bulk deposits must generally receive consistent rates, while deposits with different liquidity treatment under the LCR framework may be priced differently.
NRI Rupee Deposits Also Covered
The same LCR-based flexibility has been extended to rupee deposits held by non-residents. Banks can consider the applicable run-off rate under the LCR framework when determining different interest rates for eligible bulk NRI rupee deposits.
The revised framework applies to commercial banks covered by the amended directions, with parallel amendments also issued for regional rural banks and other banking categories.
For large depositors, the key change will be greater visibility into the rates being offered on bulk FDs. For banks, the framework combines daily disclosure and uniform pricing for similar deposits with flexibility to account for liquidity-related differences.
Disclaimer
This article is intended for general informational purposes and should not be treated as financial advice. RBI rules and bank deposit rates may change, and the actual interest offered on a fixed deposit can vary according to the bank’s applicable terms and the characteristics of the deposit. Customers should check the latest information published by their bank and the RBI before making any financial decision.