New FD Rules Mandate Daily Bulk Deposit Rate Disclosure from October 1

Effective October 1, a new set of regulations will compel banks across several categories—including commercial, small finance, regional rural, local area, payment and urban cooperative institutions—to disclose bulk deposit interest rates each working day by 10 am, with a brief extension to 10:10 am. The rates displayed online will become the binding rates for paying interest on those deposits. Uniformity is required for similar bulk deposits across all branches, preventing branch-level price discrimination.

Nonetheless, banks retain the ability to adjust rates according to the run-off rates dictated by the Liquidity Coverage Ratio framework, a flexibility that also applies to rupee deposits held by non-resident customers. These changes aim to increase transparency and align pricing with liquidity risk considerations.