RBI introduces new fixed deposit and banking rules

The Reserve Bank of India (RBI) has introduced new guidelines regarding bank deposit interest rates and transparency, set to take effect on October 1. These regulations aim to standardize interest rates across all bank branches and improve disclosure for bulk deposits.

Under the new framework, banks are required to offer uniform interest rates for fixed deposits (FD) of the same amount and duration across all their branches, eliminating regional or branch-specific rate discrimination. Additionally, banks must update their websites daily by 10:00 AM (with a 10-minute grace period) to reflect current interest rates, including those for bulk deposits.

Bulk deposits, defined as single term deposits of ₹3 crore or more, are permitted to have different interest rates under the LCR framework. While these changes primarily target large-scale deposits and institutional transparency, they are expected to impact the operational standards for all commercial, small finance, regional rural, and cooperative banks.