The Reserve Bank of India (RBI) has allowed banks to offer different interest rates on bulk deposits based on their run-off risk profile, but they can’t discriminate between similar deposits of the same size.

“A bank shall have the freedom to offer differential interest rates on bulk deposits, by considering the differential run-off rate applicable to deposits or unsecured wholesale funding under the LCR (Liquidity Coverage Ratio) framework,” the central bank said on Thursday. 

Banks will, however, have to offer uniform interest rates on deposits of similar amount across all branches and customers.

Also, the interest rates payable on deposits must be strictly as per the schedule of interest rates disclosed in advance on websites of respective banks.

"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," the central bank said.

Banks will need to disclose interest rates payable on deposits, including bulk deposits, on their websites at 10 am, with a grace time of 10 minutes, at the latest by 10:10 am, on each business day.

Banks will need to disclose interest rates payable on deposits, including bulk deposits, on their website in advance. Rates for bulk deposits will need to be disclosed at 10am, with a 10-minute grace period, on each business day.

Banks will also have the freedom to continue to disclose interest rates additionally through other modes of communication, such as SMS and e-mail.

The revised instructions, effected through 'Reserve Bank of India (Interest Rate on Deposits) Second Amendment Directions, 2026', will come into force from 1 October.

The RBI said the directions have been issued after receiving stakeholders' feedback on draft norms issued in June.

The changes follow media reports in May that HDFC Bank paid about Rs 45 crore to the Maharashtra State Road Development Corporation (MSRDC) in fiscal 2024 and 2025, with the payments recorded as marketing expenses linked to ⁠differential interest.

Earlier this week, HDFC Bank said its board concluded that the conduct of the employees involved in setting deposit rates for MSRDC had constituted business overreach, rather than acting for personal enrichment.