RBI introduces flexible bulk-deposit rates and daily rate disclosures starting Oct. 1

The Reserve Bank of India has overhauled the regulatory framework governing bulk deposits, amending the Interest Rate on Deposits Directions, 2025, effective October 1, 2026. Banks are now permitted to offer differential interest rates on bulk deposits after accounting for liquidity risk under the Liquidity Coverage Ratio (LCR) framework, a change that covers both domestic rupee deposits and rupee deposits held by non-residents.

To boost transparency, the RBI requires banks to post the current bulk-deposit rates on their websites each business day, with the rates to be displayed by 10:00 a.m. and a short extension allowed until 10:10 a.m. The daily disclosure rule aims to give customers timely access to pricing information. Despite the new flexibility, the RBI maintains that rates must be consistent across all branches for similarly placed depositors, preventing discriminatory pricing based on location or individual negotiation. The reforms align deposit pricing with the revised LCR guidelines outlined in the Commercial Banks - Asset Liability Management Directions, 2025.