The math behind FDs will change from October 1! How much of an impact will the RBI's new rules have?

From October 1, 2026, investors placing fixed deposits (FDs) with commercial banks will see significant changes in how interest rates for bulk fixed deposits are disclosed, displayed, and applied. The Reserve Bank of India (RBI) has introduced new regulations aimed at making bulk deposit rates transparent and easy to understand, while ensuring uniformity in rates across all bank branches for similar deposits. These new rules will apply to commercial banks, small finance banks, regional rural banks (RRBs), local area banks, payments banks, and urban cooperative banks. These changes are particularly significant for customers making large-value deposits, as bulk deposits are treated differently from standard retail FDs.

**Bulk FD rates to be disclosed every working day**
Starting October 1, banks must publish their applicable bulk-deposit interest rates on their official websites by 10:00 AM on every working day. A 10-minute grace period is allowed, meaning rates can be updated up to 10:10 AM. Banking institutions will also be required to adhere to the rates displayed on their websites when paying interest on eligible deposits. This provides depositors with a clear reference point when booking or negotiating bulk FDs involving large sums. It is important to note that for scheduled commercial banks, a bulk deposit is generally defined as a single-rupee term deposit of ₹3 crore or more; however, this threshold may vary for certain categories of banks.

Uniform Rates Across All Branches
Another key change being implemented is that banks will no longer be able to offer different interest rates for identical bulk deposits simply because they are booked at different branches. This ensures that the same rate applies across all bank branches for deposits of the same amount made on the same day. Banks may set differential rates for bulk deposits based on the Liquidity Coverage Ratio (LCR) applicable to bank deposits.

This exemption will also apply to certain rupee deposits held by non-residents. This means banks can offer differential interest rates on bulk deposits to eligible individuals, taking into account the run-off rates applicable under the LCR framework. Furthermore, the new rules will apply not only to domestic deposits but also to specific bulk deposits held under the non-resident rupee deposit framework.

What is the impact on fixed deposit investors?
For the majority of retail fixed deposit (FD) investors, these changes do not mean that their existing FD interest rates will automatically change or be altered starting October 1, 2026. The new framework primarily concerns how banking institutions determine, disclose, and implement rates for bulk deposits. For depositors placing large sums, it will be both essential and straightforward to check the rate quoted by the bank on the date of booking.

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