Know these rules before October 1; otherwise, you could lose out on bulk FDs

Under new RBI regulations, interest rates for bulk fixed deposits (FDs) are set to change starting October 1, 2026. Find out how a uniform interest rate will directly benefit you and what changes to expect.

RBI New FD Rules 2026: The Reserve Bank of India (RBI) is modifying the rules for determining interest rates on bulk fixed deposits—that is, FDs involving large sums of money. These new rules will come into effect on October 1, 2026. The objective is to enhance transparency regarding the interest rates banks offer on large FDs while also providing banks with some flexibility based on their specific requirements.

What exactly is a bulk deposit?

If you place a fixed deposit of ₹3 crore or more with a bank in a single transaction, it is classified as a bulk deposit. Banks typically offer distinct interest rates for such large deposits, which may differ from the rates offered on standard FDs.

What must banks do on a daily basis now?

Under the new regulations, banks are required to publish their bulk deposit rates by 10:00 AM on every working day. In the event of a delay, banks will be granted a 10-minute grace period, allowing them to publish the rates by 10:10 AM.

Furthermore, banks must adhere to the rates displayed on their websites when paying interest, regardless of whether the deposit is a standard one or a bulk deposit. This means that if you are considering opening a large FD, the rates listed on the bank's website will become a reliable and crucial piece of information.

Will the same rate apply at every branch?

Until now, different branches of the same bank could offer varying interest rates for identical bulk deposits. The new rule puts a stop to this practice.

If bulk deposits of the same amount are placed at different branches on the same day, the bank must offer a uniform interest rate across all those branches. This eliminates the customer's concern that one branch might offer a lower rate while another offers a higher one.

So, where do banks have flexibility?

Despite the rule mandating uniform rates, banks will retain the scope to offer different rates under specific conditions. This flexibility is linked to the Liquidity Coverage Ratio (LCR) framework.

Simply put, the LCR assesses how quickly different types of deposits might be withdrawn in the event of a sudden liquidity crunch. Based on this risk assessment, banks can offer different interest rates on certain deposits, even if the deposit amount is the same.

This rule will also apply to rupee deposits held by NRIs. In other words, if an NRI's bulk rupee deposit is treated differently under the LCR framework, the bank may offer a different interest rate on it.

Which banks will this rule apply to?

Type of Bank
Commercial Banks
Small Finance Banks
Regional Rural Banks
Local Area Banks
Payments Banks
Urban Cooperative Banks