If you are among those who invest in fixed deposits (FDs), the changes announced by the Reserve Bank of India (RBI) could be of significant importance for you. The revised instruction has been issued through the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions, 2026. According to the information available, the new changes will come into force from October 1, 2026.
What do the new rules say?
The RBI said banks will have to offer uniform deposit interest rates across all branches for the same amounts deposited by customers on any given particular day.
“The interest rates offered on deposits, including bulk deposits, shall be uniform across all branches and for all customers and there shall be no discrimination in the matter of interest paid on the deposits, between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices,” the central bank said.
Interest rate will have to be disclosed daily
Also, the interest rates payable on deposits must be strictly as per the schedule of interest rates disclosed in advance on the websites of the respective banks, in accordance with the Reserve Bank’s revised instructions on interest rates on Rupee bulk deposits and disclosure of interest rates on deposits.
Under the new rules, banks must publish interest rates for bulk deposits on their websites by 10:00 am every business day. A maximum of 10 minutes is provided, meaning the information must be available on the website by 10:10 an. This will allow customers to easily compare interest rates across different banks.
What changes for FD investors
The revised framework means that the same interest rate will apply to deposits of the same amount across all a bank’s branches. This means that if two customers make FDs for the same amount on the same day, they cannot be offered different interest rates. This will eliminate the possibility of discrimination against customers and increase transparency in the entire banking system. Several PSU banks are offering attractive interest rates on fixed deposits.
Banks to have greater flexibility
The RBI also said banks will have the freedom to offer a differential interest rate on bulk deposits, by considering the differential run-off rate applicable to deposits or unsecured wholesale funding under the Liquidity Coverage Ratio (LCR) framework.
However, stricter regulations have also been implemented to ensure transparency and equitable treatment of customers.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
