From October 1, 2026, investors making fixed deposits (FDs) with commercial banks will see major changes in the way interest rates on bulk fixed deposits are communicated, displayed and implemented. The Reserve Bank of India (RBI) has implemented new rules. Their aim is to make wholesale deposit rates transparent and easy to understand, and to ensure that similar deposits across all branches of the bank receive the same rates. The new rule will apply to commercial banks, small finance banks, regional rural banks (RRBs), local area banks, payments banks and urban cooperative banks. These changes and new features are very important for those customers who make large deposits. There is a reason for this too. Wholesale deposits are treated differently than normal retail FDs.

Bulk FD rates will be quoted on each working day

From October 1, banks will have to publish the applicable bulk-deposit interest rates on their official website by 10 am on every working day. There will be a grace period of 10 minutes, which means rates can be updated till 10:10 am. Banking institutions will also be required to follow the rates displayed on their websites while paying interest on eligible deposits. This will provide depositors with a direct reference point while booking or negotiating bulk FDs. It is important to note that for scheduled commercial banks, bulk deposits generally mean Rs. 3 crore or more is a single-term deposit. However, this limit may vary for certain types of banks.

Same rate in all branches

Another important change that will be implemented is that banks will not be able to offer different interest rates for the same bulk deposit, as it is booked in different branches. This will ensure that for deposits of the same amount taken on the same day, the same rate applies across all branches of the bank. Banks may set different rates for bulk deposits based on the Liquidity Coverage Ratio (LCR) applicable to the deposit.

The same discount will also be applicable on deposits of non-residents (Non-Resident Indians) of certain rupees. This means that banks can offer different interest rates on bulk deposits to eligible individuals taking into account the run-off rate applicable under the LCR framework. Further, the new rules will apply not only to domestic deposits but also to certain bulk deposits placed under the non-resident rupee deposit framework.

What will be the impact on fixed deposit investors?

Now, for most retail fixed deposit (FD) investors, these changes do not mean that their existing FD interest rates will change automatically or there will be any change from October 1, 2026. The new framework is primarily about how it will determine, communicate and enforce rates on bulk deposits. For depositors who deposit large amounts, it will be very convenient and very important to check the rate quoted by the bank on the date of booking.