RBI’s New FD Rules from October 1: If you are considering opening a large-amount fixed deposit (FD) with a bank, this news could be very significant for you. The Reserve Bank of India (RBI) has issued new regulations regarding interest rates on large deposits. Under these rules, banks will have greater freedom to determine interest rates in certain situations. Before investing in a Small Finance Bank, you should be aware of these new regulations.
The RBI has modified FD-related rules for Small Finance Banks, which will directly impact new investors. Banks will no longer be able to arbitrarily offer different interest rates to different customers or across different branches. Additionally, the rules concerning large deposits have been clarified. Will these new rules come into effect on October 1, 2026?
Why did the RBI make these changes?
Over the past few years, Small Finance Banks have attracted many customers by offering high FD interest rates; however, customers have often complained that the rate displayed on the website differs from the information provided at the branch. Furthermore, different customers were sometimes offered different deals. There was also a lack of a clear system regarding interest rates for bulk deposits. The RBI aims to ensure that customers make informed decisions before opening an FD and that there is no room for confusion.
Bulk deposit interest rates to be updated daily at a fixed time
For the first time, the RBI has set a specific time for updating bulk deposit interest rates. Banks will now be required to publish applicable interest rates on their websites by 10:00 AM on every working day. If necessary, these rates can be updated by 10:10 AM.
Uniform interest rates across all branches
Banks will no longer be permitted to offer different interest rates for the same type of FD across different branches on the same day. If you open an FD in Delhi and another customer opens an FD for the same amount in Mumbai on the same day, both will receive the same interest rate.
How will customers benefit?
Customers opening FDs will enjoy several benefits once the new rules come into effect. They will have access to accurate information regarding interest rates before opening an FD. Uniform rates will apply across all branches. Banks will not be able to set interest rates arbitrarily. The rules regarding bulk deposits are already clearly defined.
What is a bulk deposit?
According to current RBI regulations, a single-sum term deposit of ₹3 crore or more with Scheduled Commercial Banks and Small Finance Banks is classified as a bulk deposit. Such fixed deposits (FDs) are typically made by companies, institutional investors, trusts, and high-net-worth individuals.
Will this impact ordinary FD investors as well?
Although the bulk deposit rule applies to large investors, other changes directly benefit the average customer. Now, any customer can check the bank’s official interest rate before opening an FD and be assured that another customer at a different branch of the same bank is not receiving a different rate for the same type of FD.