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The Reserve Bank of India amends the interest rate framework for Small Finance Banks regarding bulk deposits and disclosure requirements. Small Finance Banks must disclose interest rates for bulk deposits on their website by 10:10 am on each business day. Banks must ensure interest rates remain uniform across all branches and customers for deposits of similar amounts accepted on the same date. Banks may offer differential interest rates on bulk deposits based on the run-off rates applicable under the Liquidity Coverage Ratio framework. These changes apply to both domestic Rupee deposits and Rupee deposits of non-residents. The directions take effect on October 01, 2026.
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RBI/2026-27/215 DOR.SOG(SPE).REC.178/13.03.00/2026-27 July 30, 2026
Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Second Amendment Directions, 2026
Please refer to the Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Directions, 2025 (hereinafter referred to as 'Directions'), dated November 28, 2025. On a review, it has been decided to issue revised instructions pertaining to interest rate on Rupee bulk deposits and disclosure of interest rates on deposits.
Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act,1949 and all other laws enabling the Reserve Bank India (RBI) in this regard, the RBI, being satisfied that it is necessary and expedient in public interest so to do, hereby issues the Amendment Directions hereinafter specified.
These Amendment Directions shall be called the Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Second Amendment Directions, 2026.
These Amendment Directions shall come into effect from October 01, 2026.
These Amendment Directions shall modify the Directions as under:
(1) In Chapter II on 'General Guidelines (Interest Rate Framework)', the paragraph 6(3) shall be substituted by the following, namely:
Interest rates payable on deposits, including bulk deposits, shall be strictly as per the schedule of interest rates disclosed in advance on the bank's website. However, interest rates payable on bulk deposits shall be disclosed on the bank's website at 10:00 am with a grace time of 10 minutes, latest by 10:10 am, on each business day.
(1)(a) In Chapter II on 'General Guidelines (Interest Rate Framework)', the paragraph 6(2) shall be substituted by the following, namely:
The interest rates offered on deposits, including bulk deposits, shall be uniform across all branches and for all customers and there shall be no discrimination in the matter of interest paid on the deposits, between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices.
(2) In Chapter III on 'Domestic Rupee Deposits', the following new sub-paragraph shall be inserted after sub-paragraph 9(3), namely:
9(4) Applicable run-off rates under Liquidity Coverage Ratio (LCR) framework
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 unsecured wholesale funding under the LCR framework, as specified in the 'Reserve Bank of India (Small Finance Banks – Asset Liability Management) Directions, 2025'.
(3) In Chapter IV on 'Rupee Deposits of Non-Residents', the following new sub-paragraph shall be inserted after sub-paragraph 26(3)(iii), namely:
26(3)(iv) Applicable run-off rates under Liquidity Coverage Ratio (LCR) framework
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 unsecured wholesale funding under the LCR framework, as specified in the 'Reserve Bank of India (Small Finance Banks – Asset Liability Management) Directions, 2025'.
(Dr. Sudarsana Sahoo) Chief General Manager
