The RBI has introduced new fixed deposit interest-rate rules for small finance banks, effective Thursday, October 1, 2026. The changes require clearer online disclosures, daily bulk-deposit rates and greater consistency across branches and customers.
RBI New FD Rules Begin From October 1
Fixed deposit customers of small finance banks will see new interest-rate disclosure rules from October 1, 2026. The Reserve Bank of India issued the Small Finance Banks – Interest Rate on Deposits Second Amendment Directions, 2026, on July 30.
The changes apply specifically to small finance banks and are intended to improve transparency, consistency and fairness in the way deposit interest rates are displayed and offered. Customers planning to open or renew an FD will be able to check the applicable rate schedule before placing their money with the bank.
The RBI defines a bulk deposit for small finance banks as a single rupee term deposit of ₹3 crore or more. Therefore, the daily morning publication requirement mainly affects companies, institutions, trusts, wealthy individuals and other customers placing large deposits.
RBI New FD Rules Require Daily Bulk Rate Updates
From October 1, every small finance bank must publish its bulk-deposit interest rates on its official website at 10 AM on each business day. Banks will receive a grace period of 10 minutes, allowing them to complete the update by 10:10 AM.
This requirement will give large depositors a clear view of the rates available on that particular business day. It may also make comparison between small finance banks easier before a customer commits a substantial amount for a fixed tenure.
The bank must pay interest according to the rate schedule disclosed on its website. This reduces uncertainty over the rate applicable when a deposit is accepted and makes the bank’s published rate card more important for investors.
RBI New FD Rules Mandate Advance Disclosure
Small finance banks will have to publish their deposit interest-rate schedules before accepting deposits. This requirement covers regular fixed deposits as well as bulk deposits.
Customers should therefore check the bank’s official website before opening an FD and retain a copy or screenshot of the relevant rate schedule, deposit receipt and terms. The interest rate offered should match the rate disclosed for that deposit amount, tenure and date.
The RBI’s directions also require deposit rates to remain reasonable, consistent, transparent and available for regulatory review. Banks must maintain their bulk-deposit interest-rate cards in their core banking systems for supervisory examination.
RBI New FD Rules Ensure Uniform Customer Treatment
Small finance banks must offer uniform interest rates across branches and customers for deposits of a similar amount accepted on the same date. A customer should not receive a lower rate simply because the FD was opened at a different branch of the same bank.
However, the rules allow banks to offer different rates on bulk deposits in certain circumstances. Such differences may be linked to the applicable run-off rates under the Liquidity Coverage Ratio framework, which considers the stability and liquidity characteristics of deposits or wholesale funding.
This flexibility also applies to qualifying bulk rupee deposits from non-resident customers. The criteria used for differential rates must fit within the RBI’s regulatory framework rather than being offered through undisclosed individual negotiation.
For ordinary retail FD investors below the ₹3 crore bulk threshold, the most important benefits are advance rate disclosure and consistent treatment across branches. Customers should still compare interest rates, premature-withdrawal penalties, deposit tenure, payout options and deposit-insurance limits before investing.
