The Reserve Bank of India (RBI) amended deposit regulations to allow commercial banks to offer differential interest rates on bulk deposits based on their underlying liquidity risk under the Liquidity Coverage Ratio (LCR) framework. Effective October 1, 2026, the updated directions grant lenders greater pricing flexibility by enabling them to align bulk deposit interest rates with the specific run-off rates assigned to wholesale funding streams. The central bank clarified that while banks can vary rates across different liquidity risk profiles, the principle of non-discrimination remains intact; lenders must offer uniform interest rates to all depositors placing identical amounts under similar terms on the same date.
To prevent opaque or selective pricing arrangements, the regulator tightened disclosure mandates by requiring all commercial banks to publish their daily bulk deposit interest rate schedules on their official websites between 10:00 AM and 10:10 AM on every business day. Lenders will be strictly prohibited from deviating from these pre-disclosed daily rate schedules when accepting institutional and corporate funds. The regulatory overhaul follows heightened scrutiny into private banking practices, including allegations of lenders disbursing indirect marketing payments to secure high-value public sector deposits. By linking bulk pricing flexibility directly to LCR risk categories alongside strict, time-bound daily public disclosures, the RBI aims to modernize asset-liability management, enhance corporate funding transparency, and establish a level playing field across India’s commercial banking sector.
