New Delhi, July 31 -- The Reserve Bank of India (RBI) has allowed banks to offer differential interest rates on bulk deposits based on their liquidity risk under the Liquidity Coverage Ratio (LCR) framework, while tightening disclosure norms to improve transparency in deposit pricing.

The changes will come into effect from October 1, 2026 as notified by the Central bank.

The move aligns deposit pricing with the revised LCR framework, enabling banks to differentiate interest rates on bulk deposits depending on the applicable run-off rates assigned to such deposits.

The RBI said, "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 unse...