Bulk deposit interest rate rules to change from Oct 1

The Reserve Bank of India (RBI) will implement new rules on October 1, 2026, regarding how commercial banks determine and disclose interest rates for bulk fixed deposits (FD). Under the revised framework, banks must disclose their FD rates in advance and publish bulk deposit rates every working day at 10 am. Banks will have to keep the same rates for similar bulk deposits across all branches, regardless of the deposit being booked at a different branch.

The key change from October 1 is that banks will need to update bulk deposit rates daily at 10 am, with a 10-minute grace period allowing updates up to 10:10 am. Banks can differentiate bulk deposit rates based on the Liquidity Coverage Ratio (LCR) treatment, allowing them to offer different interest rates depending on the run-off rate applicable under the LCR framework.

This means banks can consider the rate at which various types of deposits or unsecured wholesale funding may leave the bank when deciding the interest rate on bulk deposits. The same rule applies to non-resident rupee deposits, allowing banks to offer different interest rates on bulk deposits held by non-residents based on the applicable run-off rate under the LCR framework.