RBI issues Interest Rate on Deposits Amendment Directions, effective October 1, 2026

The Reserve Bank of India has issued its final Interest Rate on Deposits Amendment Directions, 2026, which come into effect from October 1, 2026. The directions span six categories of banks — commercial, small finance, regional rural, payment, local area and urban co-operative banks. They follow a draft the RBI released on June 5, 2026, that proposed greater flexibility for banks in pricing their Rupee bulk deposits while ensuring uniformity in disclosure of interest rates on deposits.

Key facts

• The Reserve Bank issued the Amendment Directions, which shall come into effect from October 01, 2026.
• The Amendment Directions issued cover six categories of banks: commercial banks, small finance banks, regional rural banks, payment banks, local area banks and urban co-operative banks.
• The Reserve Bank issued the draft "Reserve Bank of India (Interest Rate on Deposits) Amendment Directions, 2026" vide a Press Release dated June 05, 2026.
• The draft Amendment Directions proposed to provide greater flexibility to banks for pricing their Rupee bulk deposits, while ensuring uniformity in disclosure of interest rates on deposits.

Sources

• RBI Issues Amendment Directions on Interest Rate on Deposits