Uniform Interest Rates: FD Rules Going to Change from October 1, 2026; Check Details

The revised FD Rules introduced by the Reserve Bank of India focus on improving transparency in bank deposit practices. The changes mainly apply to bulk deposits and aim to create a clearer framework for how banks disclose and manage deposit interest rates. 

FD Rules from October 1, 2026: What is Changing? 

The Reserve Bank of India (RBI) has updated regulations related to interest rates on bank deposits, including new disclosure requirements for bulk deposits and standardised interest rates across branches. These revised FD Rules will come into effect from October 1, 2026. 

A bulk deposit refers to a single rupee term deposit of ₹3 crore and above. The updated framework gives banks more flexibility in deciding interest rates while ensuring that customers receive clearer information about deposit pricing. 

FD Rules Require Daily Interest Rate Disclosure 

Under the new FD Rules, banks will have to disclose interest rates payable on deposits, including bulk deposits, in advance on their websites. 

For bulk deposits, banks will publish applicable interest rates at 10:00 am on every business day. A grace period of 10 minutes will be provided, allowing updates until 10:10 am. 

This move is aimed at improving visibility around deposit rates and helping customers understand the applicable rates before placing their deposits. 

FD Rules Bring Uniform Interest Rates Across Branches 

The RBI has directed banks to maintain uniform interest rates for deposits accepted on the same date and of similar amounts across their branches. 

The RBI stated, “There shall be no discrimination in the matter of interest paid on the deposits, between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices.” 

FD Rules Allow Different Rates for Bulk Deposits 

The revised FD Rules allow banks to offer different interest rates on bulk deposits by considering factors such as the differential run off rate applicable to deposits or unsecured wholesale funding under the Liquidity Coverage Ratio framework. 

This provision provides banks with additional flexibility while maintaining regulatory oversight. 

FD Rules Impact on Retail FD Investors 

Since the updated guidelines mainly cover bulk deposits of ₹3 crore and above, retail FD investors are unlikely to see a direct impact from these changes. 

However, the revised framework may improve overall transparency and consistency in the banking deposit system, including how banks publish and manage interest rate information. 

How Bank Decide FD Interest Rates? 

Banks generally determine FD interest rates based on factors such as deposit size, tenure, liquidity requirements and market conditions. Retail deposits below ₹3 crore usually follow standard interest rate structures, while bulk deposits are priced separately. 

The RBI provided banks the freedom to decide their own interest rates on domestic term deposits of different maturities from October 22, 1997. Since then, banks have had the flexibility to structure deposit rates based on their business requirements and market conditions. 

Read More: India’s Registered Investor Base Rises to 13.37 Crore; North India Records Fastest Growth! 

Conclusion 

The updated FD Rules changes are primarily focused on bulk deposits. For bulk deposits, banks will publish applicable interest rates at 10:00 am on every business day. A grace period of 10 minutes will be provided, allowing updates until 10:10 am.  

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