RBI Mandates Uniform Deposit Rates and Greater Transparency From October 1

The Reserve Bank of India has revised its regulatory framework governing deposit interest rates, effective October 1. The new rules apply to commercial banks, small finance banks, regional rural banks, local area banks, payments banks and urban cooperative banks.

Under the revised framework, banks must disclose applicable interest rates on all deposits, including bulk deposits, in advance on their websites. For bulk deposits, rates must be published by 10:10 am on every business day. Banks are also mandated to maintain uniform deposit interest rates across all branches and for all customers, preventing discrimination between depositors.

The RBI has retained flexibility for lenders in pricing bulk deposits, allowing differential rates based on Liquidity Coverage Ratio framework considerations. The revised guidelines do not prescribe any increase or decrease in fixed deposit rates from October 1.