RBI issues major decision regarding money deposited in banks; this new rule will come into effect from October 1..

RBI's New Rules on Bank Deposit Rates: The Reserve Bank of India (RBI) has issued a crucial directive for all commercial banks in the country regarding interest rates on deposits. The RBI has clearly instructed banks to offer uniform interest rates to customers for identical deposit amounts made on the same day across all their branches. No discrimination or disparity in interest rates will be permitted between branches.

This new RBI order has been issued under the 'Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions, 2026,' which will come into effect nationwide on October 1, 2026.

Same Day, Same Amount – Identical Interest Rate

According to the central bank's revised guidelines, banks must offer the interest rate on deposits that has been pre-determined and declared on their official websites. If a customer deposits the same amount on the same day at any city or branch, banks cannot offer different interest rates.

The RBI has clarified that offering different rates for identical deposit amounts accepted on the same day is entirely unacceptable and violates the regulations.

Bulk Deposit Rates Must Be Updated by 10:10 AM Daily

To further enhance transparency, the RBI has also set a specific time for making bulk deposit interest rates public:

Deadline: All banks must publish their new bulk deposit interest rates on their websites by 10:00 AM on every business day.

10-Minute Grace Period: The RBI has allowed a maximum grace period of 10 minutes; this means banks must update their interest rates on their websites by 10:10 AM without fail.

Condition for Limited Exemption Under LCR Framework

The RBI has granted banks permission to maintain minor or limited variations in interest rates for bulk deposits under the Liquidity Coverage Ratio (LCR) framework. However, this waiver will be valid only if it is based on concrete and legitimate financial criteria, rather than the bank's arbitrary discretion.

New rules to be effective from October 1, 2026

According to the RBI, this new draft has been prepared after a thorough review of the feedback received from banking stakeholders and the general public regarding the draft guidelines issued in June. This rule, coming into effect on October 1, 2026, will ensure that bank customers receive transparent and fair returns on their deposits.

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