RBI changes the rules on bank deposit rates: What it means for you from October 1
If you have ever wondered whether your bank gives a better fixed deposit rate to a large corporate client than it gives to you, the
If you have ever wondered whether your bank gives a better fixed deposit rate to a large corporate client than it gives to you, the Reserve Bank of India has been wondering the same thing. On July 30, 2026, the RBI issued the Reserve Bank of India (Commercial Banks - Interest Rate on Deposits) Second Amendment Directions, 2026, making three specific changes to how banks set and disclose interest rates on deposits. The changes come into effect from October 1, 2026. Read Full Story The same directions have been issued simultaneously for small finance banks, regional rural banks, payment banks, local area banks, and urban co-operative banks, meaning the new transparency and uniformity rules on deposit rates apply across the entire banking system, not just commercial banks. At the centre of these changes is a category of deposit most people rarely think about: bulk deposits. Understanding what those are is the first step to understanding why this notification matters. WHAT IS A BULK DEPOSIT? A bulk deposit is any single fixed deposit of Rs 3 crore or more. Ordinary retail customers almost never deal in these. Bulk deposits are typically placed by companies, large businesses, trusts, and high net worth individuals who park large sums in banks for a fixed period in exchange for an interest rate. Because the amounts involved are so large, banks have historically offered these rates through private negotiations, sometimes giving better deals to favoured institutional clients while offering lower rates to others depositing similar amounts on the same day. That practice is now being shut down. WHAT EXACTLY IS CHANGING FROM OCTOBER 1? BANKS MUST PUBLISH BULK DEPOSIT RATES EVERY MORNING BY 10:10 AM From October 1, every commercial bank must put its bulk deposit interest rates on its official website every business day by 10:00 AM.
A grace period of 10 minutes is allowed, so the latest a bank can publish is 10:10 AM. The rule is clear: whatever rate a bank offers on any deposit, bulk or otherwise, must match exactly what is already displayed on its website. There can be no rate offered to a depositor that differs from what is publicly disclosed. In practice, this means that if you are a corporate treasury officer, an institution, or a high net worth individual placing a bulk deposit, you can check your bank's website every morning and know exactly what rate is available to you that day. No more private negotiations that others cannot see. No more wondering whether someone else got a better deal. NO DIFFERENT RATES FOR DIFFERENT CUSTOMERS The second change reinforces a principle of fairness. Banks must offer the same interest rate on deposits of the same amount placed on the same date, across all branches and for all customers. A bank cannot offer one rate to one depositor and a different rate to another depositor placing the same amount on the same day. This directly addresses the practice of banks quietly giving better rates to preferred institutional clients while offering lower rates to others. From October, that is no longer permitted. BANKS CAN NOW PRICE HIGHER RISK WITH HIGHER RATES The third change is more technical, and it actually gives banks more flexibility rather than less. Under a global banking framework called the Liquidity Coverage Ratio (LCR), different types of deposits carry different risk ratings. The idea is straightforward: some deposits are more likely to be withdrawn quickly in a financial stress scenario than others. Retail fixed deposits tend to be sticky, people generally leave them alone. Large corporate bulk deposits can move fast if a company suddenly needs cash. Until now, banks had to offer the same rate on all bulk deposits regardless of this risk difference.
The BriefWire