Reserve Bank of India imposes uniform deposit rates, new transparency rules from Oct 1

The Reserve Bank of India (RBI) has overhauled the regulatory framework governing deposit interest rates, with the new rules taking effect on 1 October 2026. The directions apply to commercial banks, small‑finance banks, regional rural banks, local‑area banks, payments banks and urban cooperative banks. Banks must publish the interest rates for all deposits, including bulk deposits, on their websites in advance; bulk‑deposit rates must be posted by 10:00 a.m. each business day with a ten‑minute grace period. The RBI also mandates that the same interest rate be offered across all branches of a bank for deposits of the same amount opened on the same day, eliminating any branch‑level discrimination. While the rules enhance transparency and uniform treatment of depositors, they retain flexibility for banks to set differential rates on bulk deposits based on the Liquidity Coverage Ratio framework. The new framework does not prescribe any increase or decrease in fixed‑deposit rates, which will continue to be set by individual banks according to liquidity, funding needs and market conditions.