FD rules change from October 1: How they affect you
What's the story
In a bid to enhance transparency, the Reserve Bank of India (RBI) has issued new guidelines for commercial banks. The rules, which come into effect from October 1, 2026, mandate these banks to publish their bulk fixed deposit (FD) interest rates on their official websites every working day. The move is aimed at ensuring uniformity in interest rates across different branches of a bank and simplifying the process for customers making large deposits.
Type
Understanding the definition of 'bulk deposit'
The RBI defines a bulk deposit as a single-rupee term deposit of ₹3 crore and above for scheduled commercial banks.
However, this definition may vary across different categories of banks.
The new guidelines apply to commercial banks, small finance banks, regional rural banks (RRBs), local area banks, payment banks and urban cooperative banks.
Compliance
Interest payment adherence to displayed rates
Under the new rules, banks will be required to adhere to the rates displayed on their websites when paying interest on eligible deposits.
This will give depositors a clear reference point while negotiating or booking a larger term bulk deposit.
The RBI's move is aimed at making sure that similar deposits get the same rate across all branches of a bank.
Uniformity
Branch uniformity in interest rates
The new rules also prohibit banks from offering different interest rates for similar bulk deposits just because they are booked at different branches.
However, there is an exception to this rule. Banks can differentiate rates for bulk deposits based on the 'Liquidity Coverage Ratio' (LCR) treatment applicable to the deposit.
This flexibility also applies to certain rupee deposits held by non-residents under specific conditions.
Impact
No direct impact on retail fixed deposits
The new framework introduced by RBI is mainly about how banks will determine, disclose and apply rates on bulk deposits.
It doesn't mean that the existing FD interest rates of retail investors will change or get amended from October 1, 2026.
For most retail fixed deposit (FD) investors, these changes are more about transparency in banking institutions' operations rather than direct impact on their current investments.