RBI deposit rules: Differential rates, daily disclosures changes explained
The Reserve Bank of India has introduced new regulations for bulk deposits, allowing banks to set differential interest rates based on liquidity risk. The policy also mandates daily public disclosure of these rates to increase transparency, effective October 2026.
Why it matters
These changes aim to stabilize the banking sector by aligning deposit pricing with liquidity management frameworks.
NEW DELHI: The Reserve Bank of India (RBI) has overhauled rules governing bulk deposits, allowing banks to offer differential interest rates based on liquidity risk under the Liquidity Coverage Ratio (LCR) framework while mandating daily public disclosure of bulk deposit rates to improve transparency. The revised instructions amend the Reserve Bank of India (Interest Rate on Deposits) Directions, 2025, and will come into force from October 1, 2026.Differential rates on bulk depositsThe RBI has allowed banks to offer different interest rates on bulk deposits after factoring in the liquidity risk associated with such deposits under the LCR framework."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," the RBI said, as quoted by ANI.The provision applies to both domestic rupee deposits and rupee deposits held by non-residents.
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