RBI’s New FD Rules From 1 October 2026: What Changes
From 1 October 2026, banks must pay the same FD rate at every branch and publish bulk deposit rates daily by 10 am. What changed and what it means for you.
By Balaji Anbazhagan
· 4 min read
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The Reserve Bank of India (RBI) has changed the rules on how banks set and show interest rates on deposits. The new rules start on 1 October 2026, a week from now. They do not raise or cut anyone’s FD rate. They are about fairness and transparency: the same deposit should earn the same rate, whichever branch you walk into, and the rate you are paid must be the one the bank has already published.
The short answer
- Start date: 1 October 2026.
- Same rate at every branch: banks cannot pay different rates on deposits of the same amount accepted on the same day just because they were opened at different branches.
- Published rate is the rate you get: a bank must pay exactly the rate in the schedule on its website.
- Bulk deposits (₹3 crore and above): banks must publish their bulk rates on their website by 10 am every business day (10:10 am at the latest), and may now price different bulk deposits differently depending on how quickly the money could be withdrawn.
- Your existing FD does not change. The rate fixed when you opened it stays until maturity.
What the RBI changed
The RBI issued the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions, 2026 on 30 July 2026, after a draft on 5 June. Similar directions cover the other types of banks.
| Rule | From 1 October 2026 |
|---|---|
| Rate at different branches | Must be the same for deposits of the same amount accepted on the same day |
| Rate you are actually paid | Must match the schedule already published on the bank’s website |
| Bulk deposit rates | Published on the website by 10:00 am each business day, with 10 minutes’ grace |
| Pricing of bulk deposits | Banks may offer different rates based on the deposit’s liquidity (how easily it can be withdrawn) |
| Deposits covered | Rupee deposits of residents and non-residents |
Which banks it applies to
Commercial banks (public and private), small finance banks, regional rural banks, payments banks, local area banks and urban co-operative banks. Post office schemes such as the Senior Citizens Savings Scheme and National Savings Certificates are run by the government and are not affected.
Why the RBI did this
Some banks quietly offered better rates at certain branches, or to certain customers, especially on large deposits. Two people depositing the same amount on the same day could end up with different returns without knowing why. The new rules close that gap for everyone.
The change for bulk deposits is mainly about bank safety. Under the RBI’s liquidity rules (the Liquidity Coverage Ratio), money that can leave a bank quickly is treated as riskier than money that is likely to stay. Letting banks pay more for “stickier” bulk money, and less for money that can run, lines up deposit pricing with that risk. Publishing those rates every morning keeps it visible.
What it means for you
| If you… | What changes |
|---|---|
| Have an FD already | Nothing. Your rate is fixed until maturity. |
| Plan a new FD under ₹3 crore | You get the bank’s published rate for your amount and tenure, at any branch. |
| Are a senior citizen | The extra rate for senior citizens continues as each bank publishes it. It must also be the same at every branch. |
| Deposit ₹3 crore or more (businesses, trusts, HNIs) | Check the bank’s website after 10 am for that day’s bulk rate. Different bulk deposits may now get different rates. |
| Were offered a “special branch rate” | That should stop. The rate on the bank’s website is the rate. |
How to use this before you book an FD
- Compare banks on their websites, not only at the branch. The published schedule is now binding.
- Check the date. Rates can change, and a deposit earns the rate that applied on the day the bank accepted it.
- Look beyond the headline rate. Small finance banks often pay more than large banks. Deposits of up to ₹5 lakh per person per bank are insured by DICGC.
- Work out the maturity amount for the tenure you want with the FD calculator. For monthly saving, try the RD calculator. Retirees can compare with the government’s SCSS.
Frequently asked questions
Will my FD interest rate change on 1 October? No. The rules change how banks set and show rates for new deposits. The rate on an existing FD stays the same until it matures.
Does the ₹3 crore bulk deposit rule affect ordinary savers? Very rarely. For commercial banks and small finance banks, a bulk deposit is a single rupee term deposit of ₹3 crore or more. Most household FDs are well below that.
Can a branch still offer me a higher rate than the website? No. From 1 October, the rate paid must match the schedule the bank has already published, and it must be the same at all branches for the same amount on the same day.
Are post office deposits covered? No. Post office schemes such as SCSS, NSC, KVP and time deposits follow rates set by the government each quarter. Rates for October–December 2026 are due to be announced by 30 September.
Sources
- Reserve Bank of India, notifications: rbi.org.in
- The Week, “What the RBI’s new banking ‘Amendment Directions 2026’ mean for you”, 31 July 2026: theweek.in
- Business Today, “RBI’s new FD rules from October 1”, 1 August 2026: businesstoday.in
- Zee News, “RBI’s new interest rate rules for bank deposits”, 20 August 2026: zeenews.india.com
This article is for general information and education, not financial, tax or investment advice. Rules and rates change; check official sources or consult a qualified professional before acting. See our disclaimer.