RBI Revamps Deposit Regulations: Key Changes in Differential Rates and Daily Disclosure Requirements
NEW DELHI: The Reserve Bank of India (RBI) has revised its rules on bulk deposits, allowing banks to offer varying interest rates based on liquidity risk. This change, effective from October 1, 2026, mandates daily public disclosure of these rates to enhance transparency in the banking sector.
Differential Rates on Bulk Deposits
Under the new guidelines, banks can set different interest rates for bulk deposits by considering the liquidity risk associated with these funds. The RBI stated that banks have the freedom to offer these rates based on the differential run-off rate applicable to deposits or unsecured wholesale funding under the Liquidity Coverage Ratio (LCR) framework. This provision applies to both domestic rupee deposits and those held by non-residents, aligning deposit pricing with the updated LCR framework outlined in the Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025.
Mandatory Daily Disclosure of Bulk Deposit Rates
To improve transparency, the RBI has mandated that banks publish their bulk deposit interest rates on their websites every business day. Banks are required to disclose these rates by 10:00 AM, with a grace period extending to 10:10 AM. The RBI emphasized that interest rates on deposits, including bulk deposits, must adhere to the schedule disclosed in advance on the bank’s website, ensuring customers have access to the most current rates.
Uniform Rates for Similarly Placed Depositors to Continue
Despite granting banks more flexibility in pricing, the RBI has maintained that similarly placed depositors must receive equal treatment. The central bank clarified that interest rates on deposits, including bulk deposits, must be uniform across all branches and for all customers. Banks cannot offer different rates to customers with identical deposits based solely on location or individual negotiations if the deposits are otherwise the same.
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