RBI Enables Differential Pricing For Bulk Deposits Under Revised LCR Norms

New Delhi, Aug 1 (KNN) The Reserve Bank of India (RBI) has issued revised guidelines allowing banks to offer different interest rates on bulk deposits based on their liquidity risk. At the same time, the central bank has strengthened disclosure requirements to improve transparency in deposit pricing. 

The new rules will come into effect from October 1, 2026.

The move follows a review of the existing deposit interest rate framework and is aligned with the Liquidity Coverage Ratio (LCR) framework. Under the revised norms, banks can differentiate interest rates on bulk deposits depending on the run-off rates assigned to such deposits.

Flexibility with safeguards

According to the RBI, banks will have the freedom to set varying interest rates on bulk deposits by considering the applicable run-off rates under the LCR framework. This provision applies to both domestic rupee deposits and rupee deposits held by non-residents.

However, the central bank has retained the principle of non-discrimination. Banks must ensure that interest rates remain uniform for deposits of similar amounts accepted on the same date, across all branches and customers.

Stricter disclosure requirements

To enhance transparency, the RBI has mandated daily disclosure of interest rates on bulk deposits. Banks are required to publish these rates on their websites at 10:00 am each business day, with a maximum grace period of 10 minutes.

The interest rates offered must strictly follow the schedule disclosed in advance, ensuring that customers have access to consistent and timely information.

Background and implementation

The revised directions incorporate feedback received on the draft guidelines issued on June 5, 2026. The final amendments have been issued under various regulatory frameworks, covering commercial banks, small finance banks, regional rural banks, payment banks, local area banks, and urban co-operative banks.

These amendments modify the RBI’s 2025 directions on deposit interest rates and are aimed at balancing pricing flexibility for banks with improved transparency for depositors.

(KNN Bureau)