New Reserve Bank of India (RBI) rules for fixed deposits (FDs) will come into force on 1 October 2026. The changes are aimed at making interest-rate information clearer for customers and reducing differences between branches of the same bank.
Under the revised framework, a bank will not be allowed to offer different rates at separate branches when the FD is opened on the same day for the same amount and the same tenure. In practical terms, a customer placing matching deposits at 2 branches of one bank should receive the same applicable interest rate at both locations.
FD rates must be available online
Banks will have to make their applicable FD interest rates available in advance on their official websites. This will allow customers to check the relevant rate before opening a deposit, rather than relying only on information received at a branch or from a bank employee.
The online rate will serve as an important reference for customers comparing FD terms. However, the new framework does not mean that all FD rates will automatically rise or fall from 1 October 2026.
Requirement for deposits of ₹3 crore or more
Deposits of ₹3 crore or more will be classified as bulk deposits. For these deposits, banks must publish the applicable interest rates on their websites by 10 AM each day. A grace period will be available until 10:10 AM AM.
Banks may still set different rates for separate bulk deposits based on liquidity risk. This means the rules require greater disclosure and clarity, while allowing banks to determine rates for qualifying large deposits according to the stated basis.
What happens to existing FDs?
An FD opened before 1 October 2026 will not have its agreed interest rate changed because of the new rules. It will continue to earn interest under its existing terms until maturity.
The interest rate on a new FD will continue to depend on the bank’s funding cost and market conditions. The revised rules therefore standardise how rates are presented and applied in comparable cases, but do not prescribe a single rate for every deposit.
Banks covered by the guidelines
The directions will apply to commercial banks, small finance banks, regional rural banks, local area banks, payments banks and urban co-operative banks, along with the relevant banks covered by the framework.
Before opening an FD, customers should check the bank’s official website for the applicable rate, tenure and other conditions.
Conclusion
From 1 October 2026, customers will get clearer online information about FD rates, while matching deposits at different branches of the same bank will be subject to the same rate. Existing deposits will continue under their agreed terms until maturity.
Frequently Asked Questions
Q. When will the new FD rules apply?
The revised rules will apply from 1 October 2026.
Q. Will branches of the same bank offer different FD rates?
For FDs opened on the same day with the same amount and tenure, different branches of the same bank will not be allowed to offer different interest rates.
Q. Where will banks publish FD interest rates?
Banks will have to publish applicable FD interest rates in advance on their official websites.
Q. What is the bulk deposit threshold?
A deposit of ₹3 crore or more will be treated as a bulk deposit under the new framework.
Q. By what time must bulk deposit rates be published?
Banks must publish applicable bulk deposit rates by 10 AM, with a grace period until 10:10 AM AM.
Q. Will existing FD interest rates change?
No. FDs opened before 1 October 2026 will continue at their agreed interest rate until maturity.
Q. Can banks set different rates for bulk deposits?
Yes. Banks may set different rates for separate bulk deposits based on liquidity risk.
Q. Which banks are covered?
The guidelines cover commercial banks, small finance banks, regional rural banks, local area banks, payments banks and urban co-operative banks, among others covered by the directions.
