The Reserve Bank of India (RBI) has proposed tighter deposit interest rate disclosure norms for banks, including daily publication of details on their websites.

Banks are also allowed to offer differential pricing of rates on bulk deposits linked to their liquidity risk profile.

The draft amendments, issued on Friday, aim at enhancing transparency in deposit pricing and offering greater flexibility to banks in managing their liabilities.

Under the proposed changes, banks will be required to publish on their websites interest rates on deposits before the start of each business day. They cannot offer rates that have not been publicly announced.

Though banks are currently required to make advance disclosures, the proposed amendment introduces a more specific timeline for public announcement. The change aims to ensure customers have access to updated information before making deposit decisions.

The RBI has also proposed allowing banks to offer differential interest rates on bulk term deposits by taking into account the applicable run-off rates under the liquidity coverage ratio (LCR) framework. The provision will apply to both domestic rupee bulk deposits and non-resident rupee bulk deposits.

Currently, banks can vary rates based on tenure, deposit size and withdrawal terms.

Under the proposed change, the liquidity risk factor has been added to enable more structured and differentiated pricing of large deposits. 

The RBI has asked public feedback on the draft directions until 7 July 2026.

The LCR requires banks to maintain high-quality liquid assets to manage short-term financial stress.

Deposits are assigned run-off rates, indicating the likelihood of withdrawal during stress scenarios. Banks may use these run-off rates to price deposits based on their stability and associated liquidity risk.

By aligning pricing with liquidity risks, banks can better manage funding costs and maintain regulatory requirements.

The framework may also help attract more stable deposits by offering targeted interest rates. This comes at a time when competition for deposits remains high across the banking sector, said broking firm Angel One in a note.

Meanwhile, RBI Governor Sanjay Malhotra on Friday said payment of a higher interest rate than the one already disclosed is "not acceptable" to the central Bank.

He, however, declined to comment specifically on the HDFC Bank issue, where the largest private sector lender is alleged to have paid an extra sum to garner a big deposit and showed it as a marketing spend.

According to a media report, HDFC Bank paid around Rs 45 crore to the state-run Maharashtra State Road Development Corporation (MSRDC) during FY24 and FY25 through marketing expenses classified as "differential interest". HDFC Bank has denied the allegation.

Addressing the post-policy review press conference, Malhotra said the RBI permits differential pricing of deposits, whereby senior citizens may get higher interest rates and the tenor of a deposit may also influence the rate a bank offers.

"They (banks) have to display it. Any differential rate beyond that if someone is giving is certainly not acceptable," Malhotra said.

He said competition among banks for garnering deposits is good, but asked the lenders to be "transparent" as they go about mobilising the deposits.