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Banks will have to ensure transparency and uniformity in the disclosure of deposit interest rates, per draft amendment directions.
Rupee logo at Reserve Bank of India (RBI) headquarters in Mumbai
The Reserve Bank of India (RBI) plans to give banks greater flexibility in pricing rupee bulk deposits while ensuring transparency and uniformity in the disclosure of deposit interest rates, per draft amendment directions.The requirement for ensuring transparency and uniformity in the disclosure of deposit interest rates comes in the backdrop of alleged disguising of extra interest payments as marketing expenditure on deposits placed by a Maharashtra government-owned entity with HDFC Bank. The bank has denied the allegations.As per the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Amendment Directions, 2026, interest rates payable on deposits shall be strictly, as per the schedule of interest rates, disclosed in advance on the bank’s website before the commencement of the business day.Further, in the case of domestic rupee deposits and rupee deposits of non-residents, a bank shall have the freedom to offer differential interest rate on bulk deposits, by considering the differential run-off rate applicable to deposits or unsecured wholesale funding from retail or non-retail customers, respectively under the Liquidity Coverage Ratio (LCR) framework.The RBI has invited comments / feedback on the draft Amendment Directions from the regulated entities and members of public/other stakeholders on or before June 20.Published on June 5, 2026
