Banks will have to offer the same interest rate for the same bulk deposit amount on a given day.
The RBI aims to improve transparency and eliminate preferential pricing in fixed deposits.
Highlights:
- RBI has amended deposit interest rate rules, effective October 1, 2026.
- Banks must offer the same interest rate for the same bulk deposit amount on a given day.
- The move ends preferential rates for select customers on similar deposits.
- New rules will apply to commercial banks, small finance banks, RRBs, payment banks, local area banks and urban cooperative banks.
- The RBI aims to make deposit pricing more transparent and fair.
- Customers are expected to benefit from greater uniformity in fixed deposit rates.
The Reserve Bank of India (RBI) has introduced new rules for deposit interest rates that will come into effect from October 1, 2026. The revised regulations are designed to make the pricing of bank deposits more transparent and ensure that customers placing similar deposits receive the same interest rate.
Under the amended guidelines, banks will no longer be allowed to offer different interest rates to different customers for the same bulk deposit amount on the same day. The RBI said the move is intended to eliminate preferential pricing and bring greater fairness to the banking system.
The new framework will not only apply to commercial banks but also to small finance banks, regional rural banks (RRBs), payment banks, local area banks and urban cooperative banks. This means the transparency rules will cover almost the entire banking sector.
The central bank issued the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions, 2026, on July 30. Similar directions were issued simultaneously to other categories of banks to ensure uniform implementation across the financial system.
The RBI believes that standardising deposit pricing will strengthen customer confidence and improve transparency in the fixed deposit market. Earlier, banks had greater flexibility in offering different rates to different customers, particularly for large-value deposits.
For retail depositors, the changes are expected to create a more level playing field by reducing the possibility of select customers receiving better rates for similar deposits. While the amendment mainly targets bulk deposits, it also reinforces the RBI’s broader objective of making banking practices more transparent and customer-friendly.
Banks are expected to update their internal pricing policies and systems before the new rules become operational on October 1. Customers planning to invest in fixed deposits after that date may see a more uniform interest rate structure across eligible deposit categories.
