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New FD Interest Rules from Oct 1: RBI Guidelines for Transparency and Uniformity
- •New rules for Fixed Deposit interest calculation will come into effect from October 1, 2026, as per RBI guidelines.
- •The objective is to enhance transparency in the banking system and eliminate customer confusion over varying interest rates.
- •For FDs of the same amount and tenure made on the same day, banks will offer uniform interest rates across all branches.
- •FDs exceeding 3 crore rupees will be classified as 'bulk deposits,' requiring banks to publish applicable interest rates on their website by 10 AM daily.
- •Existing FDs made before October 1, 2026, will not be affected; these rules apply to commercial banks, small finance banks, RRBs, and other relevant banks.
Key Questions Answered
Starting October 1, 2026, the Reserve Bank of India mandates that if an FD of the same amount and tenure is made on the same day across different branches of the same bank, uniform interest rates must apply. This aims to eliminate customer confusion and bring transparency, though it does not directly change overall interest rates or alter pre-existing FDs made before that date.
Under the new guidelines, fixed deposits exceeding 3 crore rupees are treated as bulk deposits. For these large deposits, banks are required to publish their applicable interest rates on their official website daily by 10 AM, with a grace period allowed until 10:10 AM. Additionally, banks retain the ability to set different interest rates for various bulk deposits based on liquidity risk.
The new guidelines apply broadly across various banking institutions, including commercial banks, small finance banks, regional rural banks, local area banks, payments banks, and urban co-operative banks. Customers are advised to check the updated terms, tenure, and rates directly on their bank's official website before investing.
