New RBI Deposit Rules: How The Changes In Bulk FDs May Impact Large Depositors

Banks will have to follow a new set of rules for large fixed deposits from October 1, 2026, as the Reserve Bank of India (RBI) is planning to implement new rules in how bulk deposits are priced and their interest rates disclosed.

For bank customers, the changes are most relevant to those who place large sums in fixed deposits (FDs). Customers with regular FDs below Rs 3 crore will largely continue to fall under the retail deposit category.

Banks Can Offer Different Rates

Banks generally have separate deposit rates for retail and bulk deposits. Under the revised rules, banks can offer different deposit rates on bulk deposits, while following the requirement of uniform rates for deposits with similar features.

The RBI has allowed banks to consider the differential run-off rate applicable to deposits or unsecured wholesale funding under the Liquidity Coverage Ratio (LCR) framework when pricing bulk deposits. This applies to domestic deposits and rupee deposits of non-residents.

In practical terms, banks will have more flexibility in deciding the rates they offer on large deposits. The change does not mean that every depositor placing Rs 3 crore or more will necessarily get a different rate. The rate will depend on the bank’s applicable pricing structure and the terms of the deposit.

Similar Deposits Must Get Same Rate

The RBI has also reiterated that banks must offer the same interest rate for deposits of a similar amount accepted on the same date.

The rule applies across the bank’s branches for deposits with similar characteristics. This means a bank cannot offer different interest rates to two similar deposits simply because they were placed at different branches, provided the deposits were accepted on the same date and have the same relevant features.

Bulk Deposit Rates

Banks have been directed to publish bulk deposit interest rates on their websites every business day.

The rates must be disclosed at 10 am, with a maximum grace period of 10 minutes. The interest payable on deposits, including bulk deposits, must follow the schedule of rates that the bank has disclosed in advance on its website.

This means customers looking to place a bulk deposit will be able to check the applicable rate published by the bank before making the deposit.

For most individual FD investors, the changes will have limited direct impact. Those with deposits below Rs 3 crore are generally covered under the retail deposit category. The revised bulk deposit rules will be more relevant to individuals and other depositors placing Rs 3 crore or more in a single rupee term deposit.