RBI Amends Deposit Interest Rate Directions, Allows Differential Rates For Bulk Deposits

The Reserve Bank of India (RBI) on 30 July amended its directions on interest rates on deposits, permitting banks to offer different interest rates on Rupee bulk deposits based on Liquidity Coverage Ratio (LCR) requirements while mandating uniform interest rate disclosure across branches and customers for similar deposits.

The amendments, which come into force from 1 October 2026, were issued after considering stakeholder feedback on the draft directions released by the RBI in June 2026.

Under the amended directions, banks can offer different interest rates on bulk deposits based on the Liquidity Coverage Ratio (LCR) requirements applicable to such deposits. The RBI has extended the same flexibility to Rupee deposits held by non-residents. It has also clarified that interest rates on deposits, including bulk deposits, must be uniform across all branches and for all customers for deposits of the same amount accepted on the same date. The requirement prevents banks from offering different rates for similar deposits.

The amended directions further require banks to disclose interest rates applicable to all deposits, including bulk deposits, in advance on their websites. Rates offered on bulk deposits must be published at 10:00 am on every business day, with a grace period until 10:10 am.

The RBI has issued corresponding amendment directions for commercial banks, small finance banks, regional rural banks, payment banks, local area banks and urban co-operative banks.