NEW DELHI: The Reserve Bank of India (RBI) has overhauled rules governing bulk deposits, allowing banks to offer differential interest rates based on liquidity risk under the Liquidity Coverage Ratio (LCR) framework while mandating daily public disclosure of bulk deposit rates to improve transparency. The revised instructions amend the Reserve Bank of India (Interest Rate on Deposits) Directions, 2025, and will come into force from October 1, 2026.
Differential rates on bulk deposits
The RBI has allowed banks to offer different interest rates on bulk deposits after factoring in the liquidity risk associated with such deposits under the LCR framework.“A bank shall have the freedom to offer differential interest rate on bulk deposits, by considering the differential run-off rate applicable to deposits or unsecured wholesale funding under the LCR framework,” the RBI said, as quoted by ANI.The provision applies to both domestic rupee deposits and rupee deposits held by non-residents. According to the central bank, the move aligns deposit pricing with the revised LCR framework outlined in the Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025.
Mandatory daily disclosure of bulk deposit rates
In a move aimed at improving transparency, the RBI has directed banks to publish bulk deposit interest rates on their websites every business day.Under the revised rules, banks must disclose the applicable rates by 10:00 am, with a grace period of up to 10:10 am.“Interest rates payable on deposits, including bulk deposits, shall be strictly as per the schedule of interest rates disclosed in advance on the bank’s website,” the RBI said.The daily disclosure requirement is intended to make bulk deposit pricing more transparent and ensure customers have access to the latest rates.
Uniform rates for similarly placed depositors to continue
While giving banks greater flexibility in pricing bulk deposits, the RBI has retained the principle that similarly placed depositors must be treated equally.“The interest rates offered on deposits, including bulk deposits, shall be uniform across all branches and for all customers and there shall be no discrimination… between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices,” the RBI said.This means banks cannot offer different rates to customers with similar deposits solely based on location or individual negotiations if the deposits are otherwise identical.
