RBI issues new FD rules:Small finance banks will now have to provide complete information about interest rates in advance; Know – 5 major changes

The Reserve Bank of India (RBI) has issued new guidelines for investors making Fixed Deposits (FD) in the country’s major Small Finance Banks (SFBs). Now customers of Small Finance Banks will receive complete information about interest rates in advance. These changes have been made under the Reserve Bank of India Second Amendment Directions-2026. These new rules and regulations came into effect from October 1, 2026. The objective of this RBI step is to bring more clarity, transparency and fairness in the system for depositors investing in FDs in Small Finance Banks across the country. RBI’s New FD Rules: Know the 5 Major Changes 1. Disclosure of Interest Rates Mandatory Before Offering Deposits Under the new framework, Small Finance Banks now have to publish their deposit interest rate schedule in advance. The interest given on regular and bulk deposits should be according to the rates displayed on the bank’s website. This step will make it easier for customers to compare FD rates of different banks. 2. Set Time for Updating Bulk Deposit Rates For bulk deposits, small finance banks will have to publish applicable interest rates on their website at 10:00 AM every business day. A grace period of 10 minutes will be given, meaning banks can update their rates until 10:10 AM. For scheduled commercial banks and small finance banks, a single rupee term deposit of ₹3 crore or more is considered a bulk deposit. 3. Uniform Interest Rates Across All Branches RBI has clearly stated that deposit interest rates should be uniform across all branches of the bank and for all customers. Banks cannot offer different rates on deposits of the same amount accepted on the same date. This will ensure no discrimination against customers based on any branch or profile, and everyone will get equal rights. 4. Permission for Different Rates on Bulk Deposits The uniformity rule will apply to normal or regular deposits. However, small finance banks can offer different interest rates on bulk deposits. Banks will have to clarify these rules in advance. This difference in rates can be based on factors such as deposit stability and liquidity requirements under RBI’s regulatory framework. This exemption will also apply to bulk deposits received from non-resident customers. 5. What Will Be the Impact on FD Investors By implementing advance disclosure, uniform pricing, and regulated exemptions for bulk deposits, this new framework will protect the interests of depositors on one hand. On the other hand, it will help banks in better management of their funds. What does this mean for customers? What is Bulk Deposit? Under banking regulations, a single term deposit (FD) of ₹3 crore or more in Scheduled Commercial Banks and Small Finance Banks (SFBs) is considered a ‘bulk deposit’. Large institutions, corporates, or High-Net-Worth Individuals (HNIs) typically make FDs of such large amounts.