RBI’s New Fixed Deposit Rules Kick In From October 1, Here’s What Changes and Who It Affects
New Delhi, August 04: The Reserve Bank of India has rolled out new rules governing bank deposits, set to take effect from October 1, 2026. The changes give banks greater flexibility in setting interest rates on bulk fixed deposits and introduce a requirement for daily disclosure of these rates. For the vast majority of retail investors with regular fixed deposits, however, these changes are expected to have little to no bearing on how their deposits work.
What Exactly Has Changed?
The RBI has updated the framework around interest rates on bulk deposits. Going forward, banks will be permitted to offer varying interest rates on bulk deposits based on their liquidity needs under the Liquidity Coverage Ratio (LCR) framework. Previously, banks typically offered a uniform rate to depositors placing similar bulk deposits on the same day for the same tenure.
The new rules come into force from October 1, 2026, after the RBI pushed back the original implementation date at the request of banks, who needed more time to update their internal systems.
What Counts as a Bulk Deposit?
A bulk deposit refers to a large, single-rupee term deposit — usually placed by companies, institutions, trusts, or high-net-worth individuals. At most commercial banks, deposits of ₹3 crore or more fall under this category.
Key Changes Effective October 1
Differentiated interest rates: Banks will now have the freedom to set different interest rates on bulk deposits depending on their funding requirements and liquidity position, giving them more room to manage large deposits strategically. As per the RBI’s Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions, 2026, issued on July 30, 2026, banks can factor in the differential run-off rate applicable to such deposits or unsecured wholesale funding under the LCR framework, in line with the 2025 Asset Liability Management Directions.
Daily rate disclosure: Banks will be required to publish their bulk deposit interest rates every business day, a move intended to boost transparency and make it easier for large depositors to compare offerings across banks. The RBI specified that these rates must be published on each bank’s website by 10:00 am, with a short grace window extending to 10:10 am.
Uniformity across branches: The central bank also reiterated that interest rates on deposits, including bulk deposits, must remain consistent across all branches and customers, with no discrimination between similar deposits accepted on the same date at any branch of a bank.
Will This Affect Regular FD Investors?
For those with standard fixed deposits — whether a few thousand rupees or a few lakh — the impact of these changes is expected to be minimal. There’s no alteration to the rules governing regular retail FD interest rates, tenures, premature withdrawal terms, senior citizen benefits, or deposit insurance coverage. These updates are specifically targeted at bulk deposits and do not extend to ordinary retail fixed deposits.
