FD rules from October 1, 2026 – What’s changing?
The Reserve Bank of India (RBI) has revamped the regulations for interest rates on bank deposits by introducing new disclosure requirements for bulk deposits, standardizing interest rates across branches and more.
The updated FD rules will be effective from October 1, 2026
FD investments: What do the new RBI guidelines mean?
With these revised guidelines, the RBI aims to give banks greater flexibility in determining their interest rates, in addition to introducing new disclosure requirements for bulk deposits.
Note: Bulk deposit means a single-rupee term deposit of Rs 3 crore and above.
Here’s a look at the major changes that will come into effect starting October 1, 2026
Interest rate update by 10 am everyday
Starting October 1, 2026, banks would have to disclose interest rates payable on deposits, including bulk deposits, in advance on it’s website.
Interest rates payable on bulk deposits will be disclosed on the bank’s website at 10:00 am with a grace time of 10 minutes, latest by 10:10 am, on each business day
Uniform interest rates across branches
Banks have been directed to offer uniform interest rates on deposits, accepted on the same date.
“There shall be no discrimination in the matter of interest paid on the deposits, between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices,” the RBI said.
Differential interest rate on bulk deposits
Further, banks have been given the freedom to offer differential interest rates on bulk deposits by considering the differential run-off rate applicable to deposits or unsecured wholesale funding under the LCR framework.
Do these rules impact retail FD investors?
Since these rules pertain to bulk deposits (Rs 3 crore and above), the impact on FD investors is likely to be limited. However, these guidelines do bring more transparency and uniformity across banks.
How do banks fix FD interest rates?
Banks generally offer varying FD interest rates depending on the size of the deposit. Retail deposits, which are below Rs 3 crore, usually have one set of interest rates, while bulk deposits of Rs 3 crore and above are priced separately.
With effect from October 22, 1997, RBI gave the freedom to banks to fix their own interest rates on domestic term deposits of various maturities
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.