RBI changes bulk FD rules from October 1: What depositors and banks need to know

The Reserve Bank of India (RBI) is changing the framework governing interest rates on bulk fixed deposits (FDs), with the revised rules coming into effect from October 1, 2026. The changes seek to bring greater transparency to bulk deposit pricing while allowing banks some flexibility based on liquidity requirements.

Banks must disclose bulk FD rates daily

Under the revised framework, banks will have to disclose applicable bulk deposit rates by 10 am on every working day. A 10-minute grace period will be available, allowing banks to update the rates by 10:10 am.

Banks will also have to follow the interest rates displayed on their websites when paying interest on deposits, including bulk deposits. This makes the published rate an important reference point for depositors considering a large FD.

A bulk deposit is defined as a single-rupee term deposit of ₹3 crore and above. Interest rates offered on such deposits can differ from those offered on regular deposits.

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Same rates across branches for similar deposits

The new rules also seek to prevent banks from offering different rates for similar bulk deposits simply because they are booked at different branches.

For bulk deposits of a similar amount accepted on the same day, banks will have to offer the same applicable rate across their branches. This is intended to bring consistency to the pricing of large deposits.

However, the framework does allow banks to differentiate rates in certain circumstances linked to liquidity requirements.

LCR treatment can determine different rates

Banks can offer different interest rates on bulk deposits depending on the run-off rate applicable under the Liquidity Coverage Ratio (LCR) framework.

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In simple terms, the LCR framework considers the possibility that different types of deposits and unsecured wholesale funding may leave a bank during a period of liquidity stress. The new rules allow banks to take this treatment into account when pricing bulk deposits.

This means that while similar deposits cannot simply be priced differently across branches, banks retain flexibility where deposits have different liquidity characteristics under the LCR framework.

NRI rupee deposits also covered

The same LCR-linked flexibility will apply to certain rupee deposits held by non-residents. Banks can offer different rates on bulk NRI rupee deposits based on the applicable run-off rate under the LCR framework.

The revised framework will apply across commercial banks, small finance banks, regional rural banks, local area banks, payment banks and urban cooperative banks.

For large depositors, the key change will therefore be greater visibility into the rates available on bulk FDs. For banks, the new framework combines daily disclosure and branch-level consistency with flexibility to price deposits according to their liquidity treatment.

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