- RBI's revised deposit rules take effect from October 1 for various bank types
- Interest rates on deposits must be disclosed on banks' websites by 10:00 am daily
- Interest rates will be uniform across all branches and customers for similar deposits
The Reserve Bank of India (RBI) has revised deposit rules in a notice issued on Friday, July 30, with the norms coming into effect from October 1. Notably, these rules will apply to commercial banks, small finance banks, regional rural banks (RRBs), local area banks, payment banks and urban cooperative banks.
Notably, the changes are not expected to result in major changes in retail fixed deposits overnight, but are likely to bring more transparency for customers and give banks more flexibility for bulk deposits.
Here's a detailed look at RBI's revised rules and everything depositors, banks must know -
Transparency in interest rates
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.
Uniformity in interest rates
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.
Provision of differential interest rates
A bank shall have the freedom to offer differential interest rate on bulk deposits, by considering rates applicable to deposits or unsecured wholesale funding under the LCR framework, as specified in the ‘Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions 2025.
Will interest rates on FDs change?
The revised rules by RBI has not mentioned any increase or reduction in fixed deposit interest rates from October 1 onwards. Banks will determine deposit rates based on specific factors such as liquidity, funding costs and market conditions.
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