RBI’s new FD rules from October: 5 changes small finance bank depositors must know

The Reserve Bank of India (RBI) has introduced new guidelines for small finance banks (SFBs) regarding fixed deposit (FD) interest rates and related factors. The changes have been announced under the ‘Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Second Amendment Directions, 2026’, and they will come into force from 1 October.

These new rules and regulations aim to bring greater clarity, transparency, consistency and fairness for depositors investing in fixed deposits offered by prominent SFBs across the country.

Here are the key points FD investors should know.

RBI FD Rules for SFBs: 5 key changes

1. Interest rates must be disclosed before offering deposits

Under the revised framework, SFBs will have to publish their deposit interest rate schedules in advance. The interest paid on regular and bulk deposits must be in accordance with the rates displayed on the bank’s website. This move is expected to help customers easily compare FD rates.

2. Fixed timing for bulk deposit rate updates

For bulk deposits, SFBs must disclose the applicable interest rates on their websites every business day at 10:00 am. A 10-minute grace period will be provided, allowing updates until 10:10 am. A bulk deposit refers to a single rupee term deposit of ₹3 crore or above for scheduled commercial banks and SFBs.

3. Uniform interest rates across branches

RBI categorically stated that deposit interest rates should be consistent across all branches and customers. Banks cannot offer different rates for deposits of the same amount accepted on the same date. This will ensure equal treatment for depositors, regardless of the branch or customer profile where they open their FD.

4. Differential rates allowed for bulk deposits

Uniformity will apply to regular deposits. However, SFBs can offer different interest rates on bulk deposits. These rules must be clarified in advance. The difference can be based on factors such as deposit stability and liquidity requirements under the RBI’s regulatory framework. The flexibility also applies to bulk deposits received from non-resident customers.

5. Impact on FD investors

By ensuring advanced disclosures, uniform pricing and regulated flexibility for bulk deposits, the newly introduced frameworks help protect depositors while enabling banks to manage their funds constructively.