The Reserve Bank of India (RBI) has introduced revised rules for fixing, announcing and applying interest rates on bulk fixed deposits. The new framework will come into effect from October 1, 2026.
The rules aim to make interest rates more transparent for large depositors, simplify the process and ensure that the same eligible bulk deposit receives the same interest rate across a bank’s branches.
Which deposits will the new rules cover?
The revised framework applies to specified banking institutions and their bulk deposits.
For scheduled commercial banks, a single rupee term deposit of ₹3 crore or more is generally classified as a bulk deposit. The threshold may differ for certain other categories of banks.
Banks must publish rates every working day
From October 1, banks will have to publish the interest rates applicable to bulk deposits on their official websites by 10 am on every working day.
Banks will get a 10-minute grace period, meaning the rates can be updated on their websites by 10:10 am.
Once published, banks will have to follow the displayed rates while paying interest on eligible bulk deposits. This will give large depositors a clear reference when comparing rates and booking their deposits.
Same rate across branches
Banks will generally not be allowed to offer different interest rates for the same bulk deposit at different branches.
This means bulk deposits of the same amount accepted on the same day should carry the same interest rate across the bank’s branches.
However, banks can offer different rates in cases linked to the run-off rate under the Liquidity Coverage Ratio (LCR) framework. A similar exception applies to certain bulk deposits under non-resident Indian rupee deposit schemes.
What does this mean for regular FD investors?
The new framework does not automatically change interest rates on existing retail fixed deposits held by general customers.
The rules mainly focus on bulk deposits of ₹3 crore or more, rather than regular retail FDs below the applicable bulk-deposit threshold.
For large depositors, the new system will make it easier to compare rates published by banks and understand the applicable interest rate before booking a bulk fixed deposit.