RBI Seeks Feedback on Draft Deposit Interest Rate Amendment Directions

Press Release no. 2026-2027/399; dated: 05.06.2026

The Reserve Bank of India (RBI) has released the Draft RBI (Interest Rate on Deposits) Amendment Directions, 2026 proposing changes to the framework governing interest rates offered by banks on deposits.

The draft directions seek to enhance transparency in deposit pricing and provide greater flexibility to banks in determining interest rates on bulk deposits in line with liquidity risk considerations.

1. Interest Rates Must Match Rates Published on Bank Website

A key proposal in the draft directions provides that interest rates payable on deposits must be strictly in accordance with the schedule of interest rates disclosed by the bank on its website.

The schedule of interest rates must be:

• Published in advance; and
• Available before the commencement of each business day.

Accordingly, banks will be required to ensure that deposit interest rates offered to customers are consistent with the rates publicly disclosed on their websites.

2. Greater Transparency in Deposit Pricing

The proposed requirement is intended to promote transparency and uniformity in the manner banks determine and offer deposit rates.

By mandating prior public disclosure of interest rate schedules, the RBI seeks to ensure that depositors have access to accurate information regarding applicable rates before placing deposits.

3. Differential Interest Rates Permitted for Bulk Deposits

The draft directions also propose to allow banks to offer differential interest rates on bulk deposits.

The differentiation may be based on factors linked to the bank’s liquidity management and funding profile.

4. Alignment With Liquidity Coverage Ratio (LCR) Framework

Banks would be permitted to determine differential rates for bulk deposits by taking into account the differential run-off rates prescribed under the Liquidity Coverage Ratio (LCR) framework.

Since different categories of deposits attract different run-off assumptions under the LCR regime, the proposal allows banks to reflect these liquidity characteristics while pricing bulk deposits.

5. Impact on Banks and Depositors

If implemented, the proposed amendments may:

• Increase transparency in interest rate disclosures;
• Improve consistency between published and applied deposit rates;
• Enable banks to better align deposit pricing with liquidity risk considerations;
• Provide greater flexibility in pricing bulk deposits; and
• Strengthen compliance and governance in deposit mobilisation practices.

6. Objective of the Draft Directions

The proposed amendments aim to enhance transparency, fairness and prudential risk management in the deposit market.

By requiring advance disclosure of interest rate schedules and permitting differential pricing of bulk deposits based on LCR-related considerations, the RBI seeks to strengthen the deposit rate framework while supporting effective liquidity management by banks.

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