The Reserve Bank of India (RBI) is introducing changes to the rules governing fixed deposits (FDs). The revised framework will come into effect from October 1, 2026, with a focus on improving transparency and giving banks greater flexibility in managing their liquidity.
If you are planning to invest in a fixed deposit, especially a large-value deposit, these changes are important to understand.
What Is Changing Under the New RBI Rules?
Under the revised framework, banks will have to disclose the applicable interest rates for bulk deposits by 10:00 AM at the end of each week. Banks will also get a 10-minute window to update their interest rates.
When interest is paid on deposits, including large-value deposits, banks will be required to follow the rates displayed on their websites.
The RBI’s existing framework allows banks to offer different interest rates depending on factors such as deposit size and other applicable conditions.
What Is a Bulk Fixed Deposit?
A bulk deposit refers to a large-value fixed deposit. For scheduled commercial banks, excluding regional rural banks, the bulk-deposit threshold is ₹3 crore and above.
Interest rates on such deposits can differ from those offered on regular fixed deposits. The new disclosure requirements are intended to make the applicable rates clearer to depositors.
Same-Day Deposits to Get Uniform Rates at Branches
Another important provision concerns large-value deposits accepted on the same day.
Banks will be required to offer the same interest rate across their branches for large-value deposits of the same amount accepted on the same day. This is aimed at reducing differences in rates between branches for comparable deposits.
At the same time, banks can continue to differentiate rates where permitted under the applicable liquidity requirements.
Different Rates Can Still Apply in Certain Cases
The revised structure does not completely prevent banks from offering different rates on wholesale deposits. Banks may differentiate rates based on applicable withdrawal assumptions under the Liquidity Coverage Ratio framework.
The RBI’s broader deposit-rate framework already permits differential rates for bulk deposits and allows rates to vary based on factors such as deposit size and other specified conditions.
Disclaimer
This article is intended for general informational purposes only. Fixed deposit rules and interest rates may change based on RBI directions and individual bank policies. Investors should check the latest information published by the RBI and their respective bank before making any investment decision