The Regulatory Update relates to the Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Second Amendment Directions, 2026, issued on 30 July 2026 as an amendment to the Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Directions, 2025, and effective from 1 October 2026. The amendment revises the instructions relating to disclosure of deposit interest rates. It provides that interest rates payable on deposits, including bulk deposits, shall be strictly in accordance with the schedule of interest rates disclosed in advance on the bank’s website. For bulk deposits, interest rates must be disclosed on the bank’s website at 10:00 a.m., with a grace period of 10 minutes, and no later than 10:10 a.m., on every business day. The amendment also substitutes the provision relating to uniformity of interest rates, requiring that interest rates offered on deposits, including bulk deposits, be uniform across all branches and customers, with no discrimination in the interest paid on deposits of similar amounts accepted on the same date at any office of the bank.
Reserve Bank of India
RBI/2026-27/218DOR.SOG(SPE).REC.177/13.03.00/2026-27 | Dated: July 30, 2026
Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Second Amendment Directions, 2026
Please refer to the Reserve Bank of India (Local Area 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 disclosure of interest rates on deposits.
2. 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.
3. These Amendment Directions shall be called the Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Second Amendment Directions, 2026.
4. These Amendment Directions shall come into effect from October 01, 2026.
5. 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.
(Dr. Sudarsana Sahoo)Chief General Manager
