RBI Introduces New FD Rules for Small Finance Banks from October 1

The Reserve Bank of India (RBI) has announced new guidelines for Small Finance Banks (SFBs) that will change how fixed deposit (FD) interest rates are offered. The revised rules, introduced under the Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Second Amendment Directions, 2026, will come into effect on October 1, 2026.

The new framework aims to improve transparency, consistency, and fairness for depositors by ensuring that retail FD interest rates remain uniform across all branches of a bank.

Key Changes in the New FD Rules

Uniform Interest Rates: SFBs cannot offer different interest rates for the same retail FD based on the branch or location. Deposits of the same amount made on the same day must receive the same interest rate across all branches.

Mandatory Rate Disclosure: Banks must publish their FD interest rate schedules in advance. The rates offered to customers must match those displayed on the bank`s official website.

Daily Bulk Deposit Updates: Interest rates for bulk deposits must be published on the bank`s website every business day by 10:00 AM, with a grace period until 10:10 AM for updates.

Bulk Deposit Flexibility: While retail FD rates must remain uniform, SFBs can continue to offer different interest rates on bulk deposits based on factors such as liquidity requirements and deposit stability, as permitted under RBI regulations.

What It Means for Depositors

The revised rules are designed to make FD pricing more transparent and ensure equal treatment for retail depositors, regardless of where they open their fixed deposits. At the same time, banks will retain limited flexibility in pricing bulk deposits to manage their funding requirements efficiently.

The new RBI guidelines will become effective from October 1, 2026.

Disclaimer: The information provided is for general informational purposes only. RBI guidelines and bank policies may change over time. Readers are advised to verify the latest details with the official RBI website or their respective bank before making any financial decisions.