BTL 926 - Interest Rate on Deposits – Revised Guidelines

 

The Banking Tutor’s Lessons

BTL 926                                                                                06-08-2026

Interest Rate on Deposits – Revised Guidelines

On 30^th July, 2026 The Reserve Bank of India (RBI) has advised the following guidelines for commercial bank deposit interest rates, setting an implementation date of October 1, 2026.

The updated guidelines mandate uniform interest rates across all bank branches for identical deposits, introduce strict advance disclosure timelines for bulk deposits, and allow flexible pricing tied to Liquidity Coverage Ratio (LCR) requirements.

Key Updates and Rules

• Uniform Branch Pricing: Banks must offer the exact same interest rate for similar deposits accepted on the same date across all of their domestic branches, removing inter-branch rate discrepancies.
• Bulk Deposit Transparency: Banks must publish interest rates for bulk deposits on their websites in advance by 10:00 AM every business day, with a strict 10-minute grace period ending at 10:10 AM.
• Differential LCR-Based Rates: Lenders are permitted to offer varying interest rates on bulk deposits based on the specific Liquidity Coverage Ratio (LCR) and wholesale funding requirements applicable to those funds.
• Non-Resident Deposits: Similar rate-setting flexibility and disclosure rules are extended to Rupee deposits held by non-resident customers. 

• No Direct Rate Mandates: The guidelines do not enforce any universal hike or cut in retail Fixed Deposit (FD) interest rates; individual banks continue to set rates based on market liquidity and funding needs.

Sekhar Pariti

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