RBI’s new deposit rules from October 2026: What FD investors should know

The revised instructions, issued through the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions, 2026, will come into effect from October 1, 2026, the central bank said.

The RBI has amended its directions on interest rates on deposits, requiring banks to maintain uniformity in deposit rates across branches for similar deposits accepted on the same day. This means customers cannot be offered different interest rates for similar deposits based on the branch where they invest.

According to the RBI, “The interest rates offered on deposits, including bulk deposits, shall be uniform across all branches and for all customers and 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 central bank has also revised disclosure requirements for deposit rates. The RBI said, “Interest rates payable on deposits, including bulk deposits, shall be strictly as per the schedule of interest rates disclosed in advance on the bank’s website.”

For bulk deposits, banks will have to disclose applicable interest rates on their websites at 10:00 am on each business day, with a grace period of 10 minutes, latest by 10:10 am.

What changes for FD investors?

For retail depositors, the revised framework means that customers with similar deposits accepted on the same date should receive the same interest rate across a bank’s branches. The move could make it easier for customers to compare deposit rates and understand the applicable returns before investing.

However, the RBI has provided banks greater flexibility in pricing bulk deposits. Under the revised framework, banks can offer differential interest rates on bulk deposits by considering the different run-off rates applicable to deposits or unsecured wholesale funding under the Liquidity Coverage Ratio (LCR) framework.

The RBI said, “A bank shall have the freedom to offer a differential interest rate on bulk deposits, by considering the differential run-off rate applicable to deposits or unsecured wholesale funding under the LCR framework.”

The revised framework also applies to Rupee deposits of non-residents, allowing banks to consider LCR-related factors while determining interest rates on bulk deposits.

Why did RBI revise the rules?

The changes follow a draft issued by the RBI on June 5, 2026, which sought feedback from regulated entities, stakeholders and members of the public. After examining the suggestions received, the central bank incorporated modifications into the final directions.

The revised directions will apply to commercial banks, small finance banks, regional rural banks, payment banks, local area banks and urban cooperative banks from October 1, 2026.

Fixed deposit investors will have greater clarity on the interest rates available before placing their money in deposits.