Mumbai, July 31 -- The Reserve Bank of India (RBI) has come up with amended deposit interest rate directions to allow banks to offer differential interest rates on bulk deposits based on liquidity considerations under the Liquidity Coverage Ratio (LCR) framework. The central bank issued the Reserve Bank of India (Commercial Banks - Interest Rate on Deposits) Second Amendment Directions, 2026, which will come into effect from October 1, 2026.

Under the revised norms, banks can offer differential interest rates on bulk deposits by taking into account the applicable run-off rates for deposits and unsecured wholesale funding under the RBI's Asset Liability Management Directions, 2025. The amendment applies to both domestic rupee deposits and...