The Reserve Bank of India issued draft amendment directions on 5 June that would give banks greater flexibility to price rupee bulk deposits, while ensuring uniformity in the disclosure of interest rates on deposits.
WHAT THE DRAFT CHANGED
The drafts would amend the RBI's Interest Rate on Deposits Directions, 2025, with revised instructions on interest rates on rupee bulk deposits and on the disclosure of interest rates on deposits. Under the draft, banks could offer differential interest rates on bulk term deposits by taking into account the different run-off rates that apply under the Liquidity Coverage Ratio (LCR) framework to deposits from retail and non-retail customers, while all deposit rates would have to be paid strictly as per a schedule disclosed in advance on the bank's website before the start of each business day.
Separate draft amendment directions were issued for commercial banks, small finance banks, regional rural banks, payments banks, local area banks and urban co-operative banks.
The measures were released in draft form for public consultation. The RBI invited comments on the drafts on or before June 20, 2026.
MARKET AND BANK IMPLICATIONS
Under the LCR framework, deposits and unsecured wholesale funding from retail and non-retail customers carry different run-off rates.
Separately, RBI Governor Sanjay Malhotra said on 5 June that paying rates above those disclosed in order to attract deposits was not acceptable.
The draft did not propose caps or floors on deposit rates; its enhanced disclosure requirements covered interest rates across deposit categories, not only bulk deposits.
Sources: Reserve Bank of India press release and draft amendment directions, 5 June 2026