The Reserve Bank of India (RBI) has overhauled its bulk deposit rules, permitting banks to differentiate interest rates on bulk deposits using liquidity risk under the Liquidity Coverage Ratio (LCR) framework and mandating daily public disclosure of bulk deposit rates, according to Business-Today. The revisions amend the Reserve Bank of India (Interest Rate on Deposits) Directions, 2025, and come into force on October 1, 2026.
Differential rates on bulk deposits
The RBI now allows banks to price bulk deposits differently after factoring in liquidity risk under the LCR framework.
"A bank shall have the freedom to offer differential interest rate on bulk deposits, by considering the differential run-off rate applicable to deposits or unsecured wholesale funding under the LCR framework," the RBI said, as quoted by ANI.
The provision applies to domestic rupee deposits and rupee deposits held by non-residents. The central bank said the change aligns deposit pricing with the revised LCR framework set out in the Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025.
Daily disclosure of bulk deposit rates
To improve transparency, banks must publish bulk deposit interest rates on their websites every business day. Rates must be disclosed by 10:00 am, with a grace period up to 10:10 am.
"Interest rates payable on deposits, including bulk deposits, shall be strictly as per the schedule of interest rates disclosed in advance on the bank's website," the RBI said.
The daily disclosure requirement is intended to make bulk deposit pricing more transparent and ensure customers have access to the latest rates, according to Business-Today.
Uniform rates for similarly placed depositors
While banks gain pricing flexibility on bulk deposits, the RBI retained the principle of equal treatment for similarly placed depositors.
"The interest rates offered on deposits, including bulk deposits, shall be uniform across all branches and for all customers and there shall be no discrimination... between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices," the RBI said.
This bars banks from offering different rates to identical deposits based on location or individual negotiation.
Key changes at a glance
| Provision | New requirement | Effective date |
|---|---|---|
| Differential pricing | Banks may set different bulk deposit rates using LCR differential run-off rates | October 1, 2026 |
| Daily disclosure | Rates must be published on the bank's website by 10:00 am; grace until 10:10 am | October 1, 2026 |
| Uniform treatment | No discrimination between similar deposits accepted on the same date at any branch | Retained |
Business implications for CFOs and treasurers
For finance executives dealing with rupee liquidity, the revised framework explicitly covers rupee deposits held by non-residents in addition to domestic rupee deposits, according to Business-Today. Because the RBI links pricing to the differential run-off rates in the LCR framework, treasury teams will need to track each bank's published schedule. The RBI's disclosure rule means rates on bulk deposits must conform strictly to the schedule posted in advance on a bank's website. The October 1, 2026 effective date gives banks and corporate treasuries a transition window to align their deposit booking and cash-management processes with the new transparency and pricing regime.
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