New Delhi, Aug. 1 -- The Reserve Bank of India (RBI) has issued revised guidelines allowing banks to offer different interest rates on bulk deposits based on their liquidity risk. At the same time, the central bank has strengthened disclosure requirements to improve transparency in deposit pricing.

The new rules will come into effect from October 1, 2026.

The move follows a review of the existing deposit interest rate framework and is aligned with the Liquidity Coverage Ratio (LCR) framework. Under the revised norms, banks can differentiate interest rates on bulk deposits depending on the run-off rates assigned to such deposits.

Flexibility with safeguards

According to the RBI, banks will have the freedom to set varying interest rates...