RBI fixed deposit rules changes: Could this impact FD interest rates for customers? We explain…

The Reserve Bank of India (RBI) earlier this week said it is allowing lenders to offer different interest rates on bulk deposits, based on their liquidity risk profile, but added that banks cannot discriminate between deposits that are of the same size.

The allowance has been made under the central bank's Liquidity Coverage Ratio (LCR) framework and will come into effect from 1 October 2025. According to the RBI's rules, banks will be required to comply with disclosure norms and publish interest rates for bulk deposits on their websites in the morning of each working day.

Does this impact FD interest rates for customers?

For most ordinary retail depositors, the biggest change will be better transparency and uniformity in how deposit rates are offered. As per the rules change, banks have to keep same interest rate across all branches for deposits of a similar amount.

• Any rate changes have to be made public on the website in the morning, and rates cannot change for identical deposits at different branches of the same bank anywhere in the country.
• For customers, the benefit is that it is now easier to compare deposit rates before investing and reduce the possibility of branch-level variations for similar deposits.
• When it comes to FD interest rates offered to customers, there may not necessarily be changes as the new rules do not mandate any increase or reduction in fixed deposit interest rates.
• Banks are expected to continue to determine their deposit rates based on factors such as liquidity requirements, funding costs and market conditions.
• The new rules primarily change how banks disclose deposit rates and how they can price bulk deposits, rather than prescribing the level of interest rates for retail FDs.

What was the RBI's order?

The RBI stated: “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 (Commercial Banks - Asset Liability Management) Directions, 2025’.”

The provision has been introduced for both domestic rupee deposits and rupee deposits of non-residents.

“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,” it added.

On disclosure it 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. However, interest rates payable on bulk deposits shall 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.”

Why was this announcement made?

The revised framework follows a draft proposal issued by the RBI in June 2026 that invited comments from banks and other stakeholders. After considering the feedback, the central bank issued the final directions and subsequently postponed their implementation to October 1 to allow banks more time to comply.

According to a Reuters report, the rule changes follow reports that private sector lender HDFC Bank paid the Maharashtra State Road Development Corporation (MSRDC) ₹45 crore for so-called “marketing expenses”. These expenses were allegedly differential payment for higher interest rate compared to what it offered other customers, according to a Moneycontrol report.

The bank in a statement said the board's enquiry concluded that employees engaged in “business overreach” but were not acting for personal gain.

(With inputs from Agencies)