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Bank FD Rules Change from October 1: What You Need to Know
- •The Reserve Bank of India (RBI) has revised interest rules for bank deposits, effective October 1, 2026.
- •New regulations primarily target bulk deposits, defined as term deposits of Rs 3 crore or more.
- •Banks must update interest rates for bulk deposits on their websites by 10 AM every business day.
- •Different branches cannot offer varying interest rates for deposits of the same amount on the same day.
- •Banks retain flexibility to set different interest rates for bulk FDs based on specific financial metrics.
Key Questions Answered
The Reserve Bank of India changed interest rules for bank deposits effective October 1, 2026, focusing on bulk deposits of Rs 3 crore or more. Under these rules, banks must pre-announce interest rates on their websites by 10 AM daily with a maximum ten-minute grace period. Additionally, banks are prohibited from offering different interest rates for deposits of the same amount on the same date across different branches.
Bulk deposits are defined as term deposits of Rs 3 crore or more made in a single transaction. Banks must update their bulk deposit interest rates on their website by 10 AM on every business day. While uniform rates are required for same-amount deposits across branches, banks retain the flexibility to set different interest rates for bulk deposits based on the run-off rate or unsecured wholesale funding under the Liquidity Coverage Ratio.
The impact of these regulatory changes on customers with retail deposits of less than Rs 3 crore will be limited. However, the new framework is expected to bring greater transparency to interest rate information and ensure uniformity across different branch locations.
