RBI's amended deposit interest rate rules for commercial banks take effect on 1 October
The Reserve Bank of India's Second Amendment Directions of 30 July 2026 change how commercial banks disclose and price deposit interest rates, including bulk deposits. They apply from 1 October 2026.
The Reserve Bank of India (RBI) has amended its rules on the interest banks pay on deposits. The Reserve Bank of India (Commercial Banks - Interest Rate on Deposits) Second Amendment Directions, 2026, dated 30 July 2026, take effect on 1 October 2026.
What the amendments say
According to the notification, commercial banks are required to:
- Follow the disclosed schedule. Interest rates on deposits must be in line with the schedule the bank has disclosed.
- Publish bulk deposit rates daily. Rates on bulk deposits are to be shown on the bank’s website at 10:00 am, with a grace time of 10 minutes, and no later than 10:10 am on each business day.
- Keep rates uniform, including for bulk deposits. Rates offered on deposits, including bulk deposits, must be uniform across all branches and for all customers. The text says there must be no discrimination between one deposit and another of a similar amount accepted on the same date at any office. The November 2025 Directions already carried this requirement in paragraph 7(2); the amendment adds the words “including bulk deposits”.
- Price bulk deposits by run-off rate. Banks may offer a differential interest rate on bulk deposits by considering the differential run-off rate that applies to deposits or unsecured wholesale funding under the Liquidity Coverage Ratio (LCR) framework. A matching provision is added for bulk rupee deposits of non-residents.
Key facts
| Item | Detail |
|---|---|
| Instrument | Second Amendment Directions, 2026 |
| Issued by | Reserve Bank of India |
| Date of directions | 30 July 2026 |
| Effective from | 1 October 2026 |
| Applies to | Commercial banks (this notification) |
| Amends | The RBI’s Interest Rate on Deposits Directions of 28 November 2025 |
Background
On 5 June 2026 the RBI published draft amendments and invited comments until 20 June 2026. The draft covered six kinds of regulated entities: commercial banks, small finance banks, regional rural banks, payments banks, local area banks and urban co-operative banks. It described the aim as giving banks more flexibility in pricing rupee bulk deposits while keeping disclosure of deposit interest rates uniform.
The RBI issued separate Second Amendment Directions on 30 July 2026 for small finance banks, regional rural banks, local area banks and urban co-operative banks, and Amendment Directions for payments banks, each effective from 1 October 2026. This article covers only the commercial banks’ directions.
The Interest Rate on Deposits Directions of 28 November 2025 define a “bulk deposit” as a single rupee term deposit of ₹3 crore and above.
The amendments deal with disclosure and pricing rules. They do not set any deposit interest rate.
Basis of these figures
Provisions, dates and quoted requirements are taken from the RBI’s own notification, Reserve Bank of India (Commercial Banks - Interest Rate on Deposits) Second Amendment Directions, 2026. The definition of a bulk deposit and the earlier wording of paragraph 7(2) are from the RBI’s Commercial Banks - Interest Rate on Deposits Directions, 2025. The description of the June draft is from the RBI’s press release of 5 June 2026. Read the notification itself for the full text.