RBI's New FD Rules: Check These Before Booking a Deposit

FD Interest Rates Are Unchanged

The changes are issued under the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions, 2026, following a draft framework released for public consultation on 5 June 2026. RBI has been explicit that this is not a rate move. Banks are not being told to raise or cut FD rates, meaning pricing will still be driven by each bank's liquidity position, cost of funds, and market conditions. What changes is the regulatory framework governing how banks determine, disclose, and apply deposit interest rates, particularly for bulk deposits.

Uniform Retail FD Rates Continue Across Branches

From 1 October 2026, banks must apply the same interest rate for similar retail deposits accepted on the same day across all branches. If a bank sets 6.75% on a one-year FD of a given size, that rate holds across every branch for a similar deposit booked that day.

Bulk Deposits Get More Pricing Flexibility

For bulk deposits, RBI has introduced greater pricing flexibility. Banks may now offer differentiated interest rates on bulk deposits based on their treatment under the Liquidity Coverage Ratio (LCR) framework. The same flexibility extends to rupee-denominated deposits from non-residents.

Bulk Deposit Thresholds

The minimum amount that qualifies as a bulk deposit depends on the type of bank. For scheduled commercial banks (except regional rural banks) and small finance banks, the threshold is ₹3 crore and above. For regional rural banks and local area banks, it is ₹1 crore or more. These thresholds determine when banks can apply differentiated rates under the new framework.

New Disclosure Timelines

Banks must publish deposit interest rates (including bulk deposit rates) on their websites before accepting deposits at those rates. For bulk deposits specifically, rates must be posted by 10:00 am on all working days, with 10:10 am allowed in exceptional circumstances. This ensures published rates are available for reference before any deposits are accepted at those rates.

Existing FDs Are Unaffected

Depositors with an existing FD do not need to do anything. The new rules apply only to fresh deposits placed from 1 October 2026 onward. Deposits booked before that date continue to earn the rate agreed at the time, right through to maturity.

Before Booking a New FD

A few practical points follow from the new rules:

• Check the latest FD interest rate on the bank's official website before booking.
• Compare across banks: uniformity applies within a bank, not across the industry.
• Retail FD rates remain uniform across branches for similar deposits accepted on the same day.

Bottom Line

The revised framework improves transparency in deposit pricing while giving banks greater flexibility in pricing bulk deposits under the LCR framework. For retail FD investors, the practical impact is limited. The rules do not change FD interest rates but strengthen how banks determine and disclose them, particularly for bulk deposits.