RBI to change bank FD rules from October 1, mainly for large deposits

Several rule changes are set to take effect across the country from October 1, 2026, including new norms for bank fixed deposits (FDs). The Reserve Bank of India (RBI) has revised certain rules relating to fixed deposits, a move that will mainly affect customers with large deposits and the banks that hold them.

The most significant change concerns large deposits. Under the new RBI rules, a large deposit is defined as one of Rs 3 crore or more. The rule is intended to give banks more flexibility in deciding interest rates on such large deposits, while also ensuring customers can easily find out what rate of interest banks are offering.

From October 1, 2026, banks will be required to display deposit interest rates on their websites, including rates for large deposits. Banks must update the interest rates applicable to large deposits by 10 am every working day, with a further 10-minute window, meaning the update must be completed by 10:10 am.

The new rule mainly applies to large-value deposits. Customers with FDs of a few thousand, a few lakh, or other modest amounts are unlikely to see a direct impact on their interest rates, since the rule is specifically aimed at large deposits.

Banks continue to set their deposit rates according to market conditions and their own requirements, which means different banks may offer different interest rates for FDs of the same tenure. This gives banks flexibility in offering different rates to large depositors. Customers planning to place a large sum in an FD may benefit from comparing interest rates across different banks before doing so.