RBI comes up with amendment directions on interest rate on deposits

The Reserve Bank of India (RBI) has come up with amended deposit interest rate directions to allow banks to offer differential interest rates on bulk deposits based on liquidity considerations under the Liquidity Coverage Ratio (LCR) framework. The central bank issued the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions, 2026, which will come into effect from October 1, 2026.

Under the revised norms, banks can offer differential interest rates on bulk deposits by taking into account the applicable run-off rates for deposits and unsecured wholesale funding under the RBI's Asset Liability Management Directions, 2025. The amendment applies to both domestic rupee deposits and rupee deposits of non-residents.

The RBI has also tightened disclosure requirements. Banks will now be required to publish interest rates on all deposits, including bulk deposits, on their websites every business day by 10 a.m., with a grace period until 10:10 a.m. The amended directions also reiterate that interest rates on deposits should remain uniform across branches and customers for deposits of similar amounts accepted on the same date.

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