Mumbai: The Reserve Bank of India (RBI) has proposed stricter disclosure requirements for deposit interest rates and a new framework allowing banks to offer differential rates on bulk deposits based on their liquidity risk profile, according to draft directions issued on Friday.Under the proposed changes, banks will be required to publish their schedule of deposit interest rates on their websites before the commencement of each business day. Interest rates paid on deposits must strictly conform to the rates disclosed in advance, preventing banks from offering rates that have not been publicly announced.The RBI has proposed allowing banks to offer differential interest rates on bulk deposits by taking into account the applicable run-off rates under the Liquidity Coverage Ratio (LCR) framework. The provision will apply to both domestic rupee bulk deposits and non-resident rupee bulk deposits.The proposal effectively links deposit pricing to the liquidity cost associated with different categories of deposits. Under the LCR framework, retail deposits generally attract lower run-off rates and are considered more stable sources of funding, requiring banks to hold lower levels of liquid assets against them. In contrast, wholesale or non-retail deposits carry higher run-off rates and impose a greater liquidity burden on banks.By explicitly permitting banks to factor these differences into deposit pricing, the RBI is formalising a structured approach to differential interest rates on bulk deposits.The proposal gives banks greater flexibility in managing funding costs while anchoring pricing decisions to a regulatory metric rather than discretionary negotiations with depositors. Banking industry executives said the framework could lead to more granular pricing of large deposits based on their stability and liquidity characteristics.The draft amendments are part of changes proposed to the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Directions, 2025. The central bank has invited feedback before finalising the framework. The move comes amid heightened regulatory scrutiny of deposit pricing practices and is seen as strengthening transparency in the mobilisation of deposits.