New Delhi: If you hold a Fixed Deposit (FD), keep an eye on some major upcoming changes being implemented by the Reserve Bank of India (RBI). These significant changes are set to come into effect on October 1, 2026. The RBI is revising the regulations governing FD and deposit rates across banks.
On July 30, 2026, the RBI issued the ‘Reserve Bank of India (Second Amendment) Directions, 2026.’ This directive introduces three key changes regarding how banks determine and disclose interest rates on deposits. There is now eager anticipation for the implementation of these rules.
Major changes for general depositors
If your FD or Recurring Deposit (RD) amount is less than ₹3 crore, the RBI’s new rule could bring you significant relief. The RBI has issued a strict directive stating that different branches of the same bank cannot apply varying interest rates to deposits of the same amount and tenure made on the same day. Previously, some banks would offer higher interest rates on deposits at specific branches to remain competitive.
This practice has now been eliminated. The RBI’s directive applies to all Small Finance Banks, Regional Rural Banks, Payments Banks, Local Area Banks, and Urban Co-operative Banks. The objective is to bring transparency to deposit regulations and ensure uniformity across the entire banking system, including commercial banks.
Rate information available on the website
Under the RBI’s regulations, banks will be required to publish their deposit rates on their websites every morning at 10:00 AM. This prevents bank employees from secretly negotiating interest rates. Banks must now offer the exact interest rate on deposits that is displayed on their website.
Rules for bulk depositors
The Reserve Bank of India has classified Fixed Deposits of ₹3 crore or more under the ‘bulk deposit’ category. A bulk deposit refers to a single fixed deposit of ₹3 crore or more; ordinary retail customers generally do not deal in these. Instead, bulk deposits are typically made by large businesses, trusts, and high-net-worth individuals.
Large sums are deposited with banks for a fixed tenure in exchange for an interest rate. Given the substantial amounts involved, banks often determine these rates through private negotiations. At times, they have offered better deals to preferred institutional clients while quoting lower rates to other customers depositing the same amount on the same day.
It is worth noting that people earn good returns by opening Fixed Deposits (FDs) with banks. If you also wish to earn good returns, you can open an FD with a bank; banks offer attractive interest rates on FDs.
