RBI’s new bulk deposit rule from October 1: What will change for banks and customers

The Reserve Bank of India (RBI) has overhauled the rules governing interest rates on rupee bulk deposits, allowing banks greater flexibility in pricing large deposits based on their liquidity profile while introducing stricter transparency requirements around interest rate disclosures.

The revised directions, which will come into force from October 1, 2026, require banks to publish interest rates for bulk deposits on their websites by 10:00 am on every business day, with a grace period extending until 10:10 am.

However, deposits of less than ₹3 crore have been kept outside this requirement, as banks already disclose interest rates for such deposits before the start of the business day.

Under the revised framework, banks can now offer differential interest rates on bulk deposits based on the Liquidity Coverage Ratio (LCR) run-off rates applicable to different categories of depositors. The flexibility has also been extended to eligible non-resident rupee deposits, where applicable.

The move recognises the differing liquidity characteristics of deposits under the LCR framework. Retail deposits generally attract lower run-off rates and are considered more stable sources of funding, requiring banks to maintain lower levels of liquid assets.

Wholesale and non-retail deposits, on the other hand, carry higher run-off rates and therefore impose a greater liquidity burden on lenders.

At the same time, the central bank reiterated that banks cannot discriminate between similar deposits of the same size. Deposit rates offered on comparable deposits must remain uniform across branches and customers, and banks must strictly adhere to the rates disclosed in advance on their websites.

The RBI also rejected requests from banks seeking permission to extend LCR-linked differential pricing to deposits below ₹3 crore. According to the regulator, allowing such flexibility would make pricing for smaller deposits “more subjective and complex”.

Another industry suggestion, seeking a standardised categorisation of entities based on applicable run-off rates, was also turned down. Instead, the RBI said banks should undertake the necessary classification themselves, based on the run-off rates they already apply while computing and submitting their LCR returns to the central bank.

The revised framework follows feedback received from banks and the Fixed Income Money Market and Derivatives Association of India (FIMMDA) and aims to balance pricing flexibility with greater transparency and consistency in deposit mobilisation.

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