Stories
RBI Overhauls FD Rules: Uniform Interest Rates, Enhanced Transparency for Customers
- •The Reserve Bank of India (RBI) has introduced new rules for Fixed Deposits (FDs) to ensure uniform interest rates across different branches of the same bank for identical deposits.
- •Banks are now mandated to publish their FD interest rates on their official websites in advance, allowing customers to check rates online before making a deposit.
- •For bulk deposits of three crore rupees or more, banks must announce interest rates daily by 10:00 AM, with a 10-minute grace period.
- •These new guidelines aim to bring transparency and uniformity to the banking system, benefiting customers by reducing discrepancies.
- •The rules apply to commercial banks, small finance banks, regional rural banks, local area banks, payments banks, and urban co-operative banks.
Key Questions Answered
Under the new Reserve Bank of India rules effective October 1, 2026, banks can no longer offer different interest rates on FDs made on the same day, for the same amount, and for the same tenure across different branches. Banks must apply a uniform interest rate and publish their rates transparently online.
For bulk deposits of three crore rupees or more, banks are required to publish their interest rates on their official websites daily by 10:00 AM, with a 10-minute grace period allowing updates until 10:10 AM. While this brings more transparency, banks retain some flexibility to set different rates for different bulk deposits based on their liquidity risk.
No, the new guidelines will not directly increase or decrease interest rates, nor will they change the interest rates for FDs made before October 1, 2026. Existing deposits will continue to earn interest as per their original agreements until maturity.
