New rules from the Reserve Bank of India (RBI) will change banks' approach to pricing and disclosing information about large term deposits starting from October 1, 2026. Under the new requirements, banks are obligated to publish rates for large deposits on their websites daily by 10 a.m., while also providing a 10-minute grace period.
Furthermore, banks must ensure uniformity of rates for similar deposits accepted on the same day across all their branches.
What will change on October 1
These changes are due to the RBI amendment dated July 30, 2026, to its deposit interest rate directives. The new norms apply to commercial banks and other specified categories of banks starting from October 1. The most significant change concerns large deposits, which within the RBI system represent large term deposits, usually starting from 3 crore rupees for scheduled commercial banks.
Previously, large depositors could negotiate rates with banks depending on the volume and nature of the deposit. The new structure does not abolish the possibility for banks to set different prices for such deposits, but it strengthens the emphasis on transparency and consistency.
As of October 1:
- Banks must disclose interest rates for large deposits on their websites by 10 a.m. every working day.
- A 10-minute grace period will be provided, allowing rates to be updated until 10:10 a.m.
- The paid interest rate must correspond to the rate disclosed by the bank in advance.
- Similar deposits accepted on the same date must receive the same interest rate in all bank branches and for all customers.
This means that a depositor can check the applicable rate online instead of relying solely on the rate quoted by a specific branch.
Why is the daily 10 a.m. report important?
The requirement for daily disclosure is particularly relevant for individuals placing very large term deposits. Rates for large deposits can change as banks assess their funding needs. Under the new system, the bank is obliged to publicly announce the applicable rate every working day.
For example, if a client approaches the bank to place a large term deposit on a certain day, the rate applicable to that deposit must match the rate published on the bank's website. A branch should not offer a different rate for a similarly structured deposit just because the client approached a different branch. The RBI has also stated that deposit interest rates, including large deposits, must be disclosed in advance, and the bank must pay interest according to this disclosed schedule.
Can banks still offer different rates?
Yes. The new rules do not mean that every large term deposit in a bank must have one rate regardless of circumstances. The RBI specifically allows banks to offer differentiated interest rates on large deposits, taking into account applicable outflow rates within the Liquidity Coverage Ratio (LCR) framework.
Simply put, the LCR system requires banks to maintain sufficiently high-quality liquid assets to withstand periods of cash outflows. Different types of deposits and wholesale funding sources may have different assumptions about how quickly money might leave the bank. The new provision allows banks to consider these differences when pricing large deposits.
This difference matters. Uniformity applies to similar deposits, but the RBI has retained some flexibility where deposits have different liquidity characteristics within the LCR system. The same flexibility was extended to corresponding rupee deposits held by non-residents.
What does this mean for retail investors in term deposits?
For most ordinary investors in term deposits, there are no radical changes in the deposit procedure. The new provisions are primarily aimed at large deposits and the manner in which banks disclose deposit rates. A person investing 1 lakh, 5 lakh, or even 25 lakh in a regular term deposit is not suddenly required to check the bank's large deposit rate at 10 a.m.
Nevertheless, the general principle remains relevant: banks must disclose deposit rates in advance and adhere to the declared schedule. For a person placing a very large deposit, this change may simplify rate comparison. The depositor can check the bank's published rate before depositing funds and keep proof of the rate applicable on that day.
What should investors in large term deposits do?
Starting October 1, investors placing 3 crore rupees or more in a term deposit should consider the following:
- Check the bank's website: find the large deposit rate published around 10 a.m. on the transaction day.
- Compare banks: do not rely solely on the rate verbally quoted at a branch or by a relationship manager.
- Check the deposit category: the rate may vary depending on the nature and liquidity treatment of the deposit.
- Keep a record: save a copy or screenshot of the published rate when opening the term deposit.
- Verify the deposit receipt: ensure that the interest rate stated in the deposit documentation matches the applicable published rate.
The RBI's goal is not to prevent banks from competing for large deposits. Instead, the revised structure aims to make the pricing process more transparent while giving banks some flexibility to account for their liquidity requirements. For ordinary investors, the direct impact is likely to be limited. However, for depositors holding several crore rupees, the daily rate disclosure and branch-level uniformity may make the process of comparing and agreeing on large deposit rates more transparent.