RBI’s new bulk FD rules from October 1: What changes for investors? Experts explain

The Reserve Bank of India (RBI) is changing the rules governing interest rates on bulk fixed deposits (FDs) from October 1, bringing greater transparency to how banks disclose rates for large deposits.

The changes are unlikely to affect most individual retail investors because they apply to bulk deposits, which for scheduled commercial banks generally start at ₹3 crore.

The revised framework is aimed at making bulk-FD pricing more transparent and giving large depositors clearer information about the interest rate applicable to their deposits.

Under the revised RBI framework, banks will have to publish the interest rates applicable to bulk fixed deposits on their websites on every working day.

The rates must be disclosed by 10 AM, with a 10-minute window available for updating the information.

Banks will also be required to pay interest on an eligible bulk deposit based on the rate disclosed in advance.

This gives large depositors a publicly available reference point to check the applicable rate before placing their money with a bank.

For scheduled commercial banks, a bulk deposit generally refers to a single rupee term deposit of ₹3 crore or more. The threshold, however, is different for certain categories of banks.