RBI Permits Banks to Offer Differential Bulk Deposit Rates Based on LCR Run-Off Rates

The Reserve Bank of India (RBI) has revised its directions on interest rates for deposits, allowing commercial banks to offer different interest rates on bulk deposits based on their liquidity profile, as per The Reuters report.  

The amended rules will come into effect from October 1, 2026. The changes apply to domestic rupee bulk deposits as well as rupee deposits accepted from non-residents. 

Pricing Linked to Liquidity Costs 

Under the revised framework, banks can consider the Liquidity Coverage Ratio (LCR) run-off rates while deciding interest rates for bulk deposits.  

The RBI noted that the pricing may reflect the liquidity cost associated with different categories of deposits under the Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025. The change provides flexibility only for bulk deposits covered under the LCR framework. 

Daily Disclosure of Interest Rates 

The central bank has also revised the disclosure requirements for deposit rates. Banks will have to publish interest rates applicable to all deposits, including bulk deposits, on their websites according to a schedule announced in advance. 

For bulk deposits, interest rates must be displayed at 10:00 am every business day. A grace period of up to 10:10 am has been allowed for updating the rates on bank websites. 

Uniform Rates for Similar Deposits 

The revised directions continue to require uniform treatment of similar deposits. Banks cannot offer different interest rates to customers for deposits of the same amount accepted on the same day, regardless of the branch where the deposit is placed. 

According to the RBI, interest rates for comparable deposits must remain consistent across branches and customers. The flexibility introduced under the new rules does not permit discrimination between deposits of the same size and date. 

Read More: Bihar's Flavoured Makhana Export to Canada is Giving Farmers a 50% Income Boost! 

Conclusion 

The revised RBI directions will come into effect from October 1, 2026. The framework introduces LCR-linked pricing for bulk deposits while retaining uniform interest rates for similar deposits and strengthening disclosure requirements. 

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