The Reserve Bank of India (RBI) has announced new rules for bank fixed deposits. The new rules, made under its new Interest Rate on Deposits Amendment Directions, 2026, comprise depositor-centric clarifications and disclosures for banks offering bulk fixed deposits (FDs) of more than Rs 3 Cr to their respective customers.
The RBI states that all banks, including commercial, small finance, regional rural, payment, local area, and urban cooperative banks, would be subject to the revised FD regulations starting on October 1, 2026.
From the effective date, the revised deposit rules will bring greater transparency and consistency to how banks offer and disclose FD interest rates. The changes are not about directing banks to raise or cut deposit rates.
Instead, they set clearer rules around how rates are disclosed and applied to comparable deposits, while giving banks greater flexibility in pricing bulk deposits.
Here’s what are the new Amendment Directions of the RBI on interest rates on deposits and how fixed deposit customers will benefit.
Banks must disclose bulk deposit rates by 10:10 am
“Interest rates payable on deposits, including bulk deposits, shall be strictly as per the schedule of interest rates disclosed in advance on the bank’s website. However, interest rates payable on bulk deposits shall be disclosed on the bank’s website at 10:00 am with a grace time of 10 minutes, latest by 10:10 am, on each business day,” RBI has said
According to RBI, regarding the disclosure of interest rates on deposits below Rs 3 crore, it has been decided not to stipulate a specific timing, as banks are generally disclosing the rates on such deposits in advance of the start of the business day, as per the stipulation in the extant directions.
No discrimination in deposit interest rates: New rule
“The interest rates offered on deposits, including bulk deposits, shall be uniform across all branches and for all customers and there shall be no discrimination in the matter of interest paid on the deposits, between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices,” the RBI has clarified in a notification dated 30th July 2026.
Since the banks’ websites are the most popular means of communication, the Amendment Directions (ADs) mandate that interest rates be disclosed there. Nonetheless, banks are allowed to use other channels of communication to reveal interest rates to their respective customers.
Banks can offer differential rates on bulk deposits
“A bank shall have the freedom to offer differential interest rate on bulk deposits, by considering the differential run-off rate applicable to deposits or unsecured wholesale funding under the LCR framework,” the RBI has clarified.
Both domestic term deposits and non-resident Rupee deposits are subject to the applicable run-off rates under the Liquidity Coverage Ratio (LCR) framework.
“It would be appropriate for the banks to do the necessary categorisation as per their need, based on the differential run-off rates applicable to deposits/ unsecured wholesale funding from various retail and non-retail customers, basis which they compute and submit their LCR Returns to RBI,” the central bank has explained.
Will the new FD rules impact depositors?
For depositors, the practical takeaway is that the rate offered should be clearer and more consistent when they place a new FD. The changes also make it more important to check the bank’s published rates and terms before investing, particularly when comparing deposits across banks.
For most depositors, the key benefit will be greater clarity and consistency around FD interest rates. Banks will have to disclose deposit rates in advance and apply them uniformly across branches and customers for deposits of similar amounts accepted on the same day.
“This should make it easier for investors to know the applicable rate before committing their money and compare rates across banks. The rules also give banks greater flexibility to offer differential rates on bulk deposits under specified conditions. For retail depositors, the key takeaway is greater transparency around the rate being offered and the terms applicable to their deposit,” said Adhil Shetty, CEO, BankBazaar.
If you are opening or renewing an FD after October 1, check the bank’s latest published interest-rate schedule before investing. Do not rely on an older rate card or assume that the rate on an existing deposit will apply to a new FD.
The revised rules require banks to disclose deposit rates in advance and apply them uniformly across branches and customers for deposits of similar amounts accepted on the same day.
It is also worth retaining the rate schedule and deposit receipt when booking a new FD so you have a record of the terms applicable at the time. For large deposits, check whether the deposit falls under the bank’s bulk-deposit category and what rate applies.
Disclaimer: This article is for informational purposes only and should not be construed as investment, financial, tax, or legal advice. Any illustrations, examples, or return projections used in this article are for explanatory purposes only and do not guarantee actual investment outcomes. The views and opinions expressed by experts quoted in this article are their own and should not be considered investment recommendations. Readers should consult a qualified professional before making any financial decisions.
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