Under the new rules, banks must provide advance information on interest rates on all types of deposits on their websites. Banks must publish applicable interest rates by 10:00 a.m. every working day. A maximum of 10 minutes grace period is allowed, but they must ensure that the rates are available by 10:10 a.m. at all times.
What’s special about the new RBI rule?
The RBI has also mandated that interest rates on deposits must be uniform across all bank branches and for all customers. Banks will not be allowed to discriminate between depositors, such as offering different interest rates for the same amount deposited at different branches on the same date. Furthermore, the central bank has maintained flexibility for banks in pricing bulk deposits.
Banks will be permitted to offer different interest rates on deposits, but they must take into account the rates applicable to deposits or unsecured wholesale funding under the Liquidity Coverage Ratio (LCR) framework specified in the Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025.
What will not change from October 1st
However, the revised guidelines do not specify any increase or decrease in fixed deposit (FD) interest rates from October 1st. Deposit rates will continue to be determined by individual banks, based on factors such as liquidity conditions, funding needs, and prevailing market conditions.
Also read: Stock market booms! Top 9 companies add ₹2.51 lakh crore; find out who benefited the most
While these changes are not expected to immediately impact retail fixed deposit rates, they are likely to bring transparency to how banks disclose deposit rates and provide them with greater operational flexibility in managing deposits.