Reserve Bank of India Allows Differential Bulk Deposit Rates

The Reserve Bank of India announced on July 30, 2026, that commercial banks may offer differential interest rates on bulk deposits based on liquidity risk and run-off rates under the Liquidity Coverage Ratio framework. Effective October 1, 2026, the rule applies to domestic rupee deposits and those held by non-residents.

To ensure transparency, the central bank now mandates that banks disclose bulk deposit rates on their websites by 10:00 am every business day. However, the regulator maintains that interest rates must remain uniform across all branches for customers with similar deposits to prevent discrimination.

These regulatory changes follow a controversy involving HDFC Bank, which allegedly paid 45 crore rupees in marketing spends to the Maharashtra State Road and Development Corporation to secure deposits at above-market rates. Following an internal review, HDFC Bank issued a warning letter and a 1 lakh rupee fine to its Managing Director and CEO, Sashidhar Jagdishan.