RBI proposes flexible pricing and daily disclosure for bulk deposits
The Reserve Bank of India (RBI) is looking to shake up how banks set interest rates for big deposits from companies and institutions.
The idea? Give banks more flexibility in setting these rates while making sure everyone can easily see what's on offer.
Bulk deposits priced by stability
Commercial banks and small finance banks may soon offer different interest rates on bulk deposits based on how stable they are, following the proposed amendment to deposit-interest directions, so more stable and less stable deposits could be priced differently.
Plus, banks will have to post their daily rate schedules online and stick to them, making things much clearer for customers.
Separate draft amendments for Regional Rural Banks, Payments Banks, Local Area Banks, and Urban Co-operative Banks would require daily online disclosure of deposit rates.
The RBI is asking for feedback before anything becomes official.