FD interest rate rules to change from October 1:
Key changes explained

New Delhi, Sep 28, 2026

Banks will have to disclose large-deposit rates in advance, with limited flexibility to price them based on liquidity requirements.

Reserve Bank of India’s (RBI’s) new rules will change how banks price and disclose bulk fixed deposits from October 1, 2026.

Banks will have to publish applicable bulk deposit rates on their websites by 10 am every business day, with a 10-minute grace period.

They will also have to offer uniform rates for similar deposits accepted on the same day across their branches.

What is changing from October 1

The changes stem from the RBI’s July 30, 2026, amendment to its directions on interest rates on deposits. The rules will apply from October 1 to commercial banks and other specified banking categories.

The most important change concerns bulk deposits. Under the RBI framework, these are large term deposits, generally starting at Rs 3 crore for scheduled commercial banks.

At present, large depositors may negotiate rates with banks depending on the size and nature of the deposit. The new framework does not remove banks’ ability to price such deposits differently, but it puts greater emphasis on disclosure and consistency.

From October 1:

•       Banks must disclose interest rates on bulk deposits on their websites at 10 am on every business day.

•       A 10-minute grace period will be available, so the rates can be updated until 10:10 am.

•       The interest rate paid must match the rate disclosed by the bank in advance.

•       Similar deposits accepted on the same date must receive the same interest rate across the bank’s branches and for all customers.

This means a depositor should be able to check the applicable rate online rather than relying only on a rate quoted by a particular branch.

Why the 10 am disclosure matters

The daily disclosure requirement is particularly relevant for people placing very large FDs.

Bulk deposit rates can change as banks assess their funding requirements. Under the new system, a bank will have to publicly disclose the applicable rate each business day.

For example, if a customer approaches a bank to place a large FD on a particular day, the rate applicable to that deposit should correspond with the rate published on the bank’s website. A branch should not quote a different rate for an otherwise similar deposit merely because the customer approached a different branch.

The RBI has also said that interest rates on deposits, including bulk deposits, must be disclosed in advance and the bank must pay interest according to that disclosed schedule.

Can banks still offer different rates?

Yes. The new rules do not mean that every bulk FD at a bank must carry one rate irrespective of circumstances.

The RBI has specifically allowed banks to offer differential interest rates on bulk deposits by taking into account the applicable run-off rates under the Liquidity Coverage Ratio (LCR) framework.

In simple terms, the LCR framework requires banks to maintain enough high-quality liquid assets to withstand a period of cash outflows. Different types of deposits and wholesale funding can have different assumptions about how quickly the money may leave the bank.

The new provision allows banks to consider these differences while pricing bulk deposits.

This distinction is important. Uniformity applies to similar deposits, but the RBI has retained some flexibility where deposits have different liquidity characteristics under the LCR framework.

The same flexibility has been extended to relevant rupee deposits held by non-residents.

What does it mean for retail FD investors?

For most ordinary FD investors, there is no major change in how they book a deposit.

The new provisions are primarily aimed at bulk deposits and the way banks disclose deposit rates. A person investing Rs 1 lakh, Rs 5 lakh or even Rs 25 lakh in a regular FD is not suddenly required to check the bank’s bulk deposit rate at 10 am.

However, the broader principle is relevant: Banks must disclose deposit rates in advance and follow the disclosed schedule.

For someone placing a very large deposit, the change could make rate comparison easier. The depositor can check the bank’s published rate before committing the money and retain evidence of the rate applicable on that date.

What should bulk FD investors do?

From October 1, investors placing Rs 3 crore or more in a term deposit should consider the following:

•       Check the bank’s website: Look for the bulk deposit rate published around 10 am on the day of booking.

•       Compare banks: Do not rely solely on a rate offered verbally by a branch or relationship manager.

•       Check the deposit category: The rate may vary depending on the nature and liquidity treatment of the deposit.

•       Keep a record: Save a copy or screenshot of the published rate when placing the FD.

•       Verify the FD receipt: Check that the interest rate mentioned in the deposit documentation corresponds with the applicable published rate.

The RBI’s objective is not to prevent banks from competing for large deposits. Instead, the revised framework seeks to make the pricing process more transparent while allowing banks some flexibility to account for their liquidity requirements.

For ordinary FD investors, the immediate impact is likely to be limited. For depositors with several crore rupees to park, however, the daily rate disclosure and branch-level uniformity could make the process of comparing and negotiating bulk deposit rates more transparent. 

[The Business Standard]