Bulk deposit interest rate rules to change from Oct 1

By Sohail Khan 25 September 2026, 2:34 pm

Synopsis

Effective from October 1, 2026, the Reserve Bank of India will implement new rules concerning bulk fixed deposits. Every bank will be mandated to reveal their daily bulk deposit interest rates at 10 am. This regulation aims to ensure that interest rates for identical bulk deposits remain the same in all branches.

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The Reserve Bank of India (RBI) is changing the rules on how commercial banks can determine and disclose interest rates of bulk fixed deposits (FD). The new FD rules will come into effect on October 1, 2026.

Under the new rules, banks need to disclose their FD rates in advance. They also need to disclose their bulk deposit rates everyday at 10 am in the morning. While the rules instruct banks to keep the same rates for similar bulk deposits, banks can differentiate bulk deposit rates based on LCR treatment.

The revised framework applies to commercial banks, small finance banks, regional rural banks (RRBs), local area banks, payment banks and urban cooperative banks.

A bulk deposit is a single-rupee term deposit of Rs 3 crore and above. Usually, interest rates on regular deposits and bulk deposits vary.

Here are the key bulk deposit changes that will be applicable from October 1.

Banks need to update bulk deposit rates everyday at 10 am

Banks will have to follow the interest rates displayed on their websites while paying interest on deposits, including bulk deposits. For bulk deposits, banks will have to publish the applicable rates by 10 am on every working day. A 10-minute grace period will be available, meaning the rates can be updated latest by 10:10 am.

Banks need to keep bulk deposit rates same across branches

Banks will not be allowed to offer different interest rates to customers for similar bulk deposits simply because the deposit is booked at another branch. The same rate will be applicable across branches for deposits of a similar amount accepted on the same day.

Different rates allowed for bulk deposits under LCR rules

Banks can offer different interest rates on bulk deposits depending on the run-off rate applicable under the Liquidity Coverage Ratio (LCR) framework.

In simple terms, banks can take into account the rate at which different types of deposits or unsecured wholesale funding may leave the bank while deciding the interest rate on bulk deposits.

Similar rule for NRI rupee deposits

The same flexibility will apply to rupee deposits held by non-residents. Banks can offer different interest rates on bulk deposits by taking into account the applicable run-off rate under the LCR framework.

This means the new rules bring changes not only to domestic deposits but also to certain bulk deposits held under the non-resident rupee deposit framework.

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