Small finance bank fixed deposit: New interest interest rate rules from October; 4 points to know

Here are the four changes announced by the RBI through these amendment directions:

The new rules say that the interest rates payable on deposits, including bulk deposits, should be strictly as per the schedule of interest rates disclosed in advance on the small finance bank's website.

The interest rates payable on bulk deposits should be disclosed on the bank's website at 10:00 am with a grace time of 10 minutes, latest by 10:10 am, on each business day.

As per RBI rules, the term ‘Bulk Deposit’ means a single rupee term deposit of ₹3 crore and above. This limit is applicable to scheduled commercial banks (excluding RRBs) and small finance banks. In case of regional rural banks, the bulk deposit limit is ₹1 crore.

The interest rates offered on deposits, including bulk deposits, should be uniform across all branches and for all customers. "...there shall be no discrimination in the matter of interest paid on the deposits, between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices,' the directions say.

The directions allow SFBs to offer differential interest rate on bulk deposits.

"A bank shall have the freedom to offer differential interest rate on bulk deposits, by considering the differential run-off rate applicable to deposits or unsecured wholesale funding under the LCR framework, as specified in the 'Reserve Bank of India (Small Finance Banks – Asset Liability Management) Directions, 2025'," the directions said.

The above rule also applies to bulk deposits offered to non-residents by the small finance banks.

The amendment directions will be effective from October 1, 2026.