Unlocking High Returns: Understanding RBI's Latest Rules On Fixed Deposit Rates
Updated: 14-10-2026 at 8:30 AM
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The Reserve Bank of India (RBI) recently issued a rule concerning RBI Fixed Deposit Scheme (FD), leading several major banks to adjust interest rates and terms on FD accordingly. The release of new fixed deposit rules 2025 seeks to redefine bulk fixed deposit categories that affect individual depositors and investors alike.
Read the article to learn more about the New RBI rules on fixed deposit, including information on RBI fixed deposit interest rate, fixed deposit rates for seniors, and more.
Overview
The table below summarises some key details about the New RBI rules on fixed deposit that one should know.
| Rules concerning | Fixed Deposit |
|---|---|
| Issued by | Reserve bank of India |
| Major changes | Revision in bulk deposit classification and encouraging banks to adjust FD rates and terms for depositors |
| Official document | RBI Master Circular on term deposits pdf |
What Are Bulk Deposits?
The RBI's proposal to modify its definition of bulk fixed deposits could have significant ramifications for banks and customers alike. Under its previous framework, any deposit over Rs 2 crore was considered bulk. But with its fixed deposit new rules in India, the limit has been increased to Rs 3 crore—effectively classifying individual deposits between Rs 2 and 3 crore as retail deposits distinct from wholesale ones—this may affect depositors’ investment decisions.
How Is The RBI Fixed Deposit Interest Rate Fixed?
Establishing the RBI fixed deposit interest rate lies within the control of banks; accordingly, rates on fixed deposits differ at most institutions depending on factors like term length and investor age. Banks also tend to vary their deposits' interest rates according to asset-liability management (ALM) policies or customer needs.
Revision Of FD Rates By Banks
As part of their response to the RBI latest rules on fixed deposit rates, several central banks have modified their fixed deposit interest rates and retail deposit limits accordingly. Here's a closer look at these changes implemented by some central banks:
State Bank of India (SBI)
SBI has reduced its FD rate across all tenures by 25 basis points for FDs below Rs. 3 crore, effective from June, 2025.
HDFC Bank
HDFC bank has reduced its FD interest rates by 20-25 basis points for FDs on selective tenures from June 2025.
Utkarsh SFB
Utkarsh SFB has also revised its FD interest rates for two-crore to three-crore rupee loans, effective June 7, 2024.
Bank of Baroda
The Bank of Baroda revised fixed rates for deposit interest effective June 12 from 2 crore to 3 crore.
PNB
PNB FD rates were revised from 2 to 3 crores. Rates are effective June 10, 2024.
Axis Bank
Axis Bank revised its fixed deposit rates of interest. The changes will benefit deposits of 2 to 3 crores. The rates are effective June 8, 2024.
Yes Bank
Yes Bank revised fixed deposit interest rates and changed the retail deposit amount from Rs 2 crore to Rs 3 crore, effective June 8, 2024.
DCB Bank
DCB Bank revised fixed deposit interest rates and also updated the retail deposit amount from 2 crores to 3 crores. The rates are effective July 7, 2024.
RBL Bank
RBL Bank revised fixed deposit rates and the number of retail deposits from 2 crores to 3 crores. The rates are effective June 8, 2024.
How Does Your Fixed Deposit Work?
Fixed deposits with a set lock-in duration are a standard option for those looking to save cash soon. The customer earns a greater interest rate than when using a standard savings account. When the account matures, the client is paid the initial deposit plus the interest accrued.
Fixed deposit accounts usually have minimum deposit requirements and minimal terms. Longer-term deposits typically offer higher interest rates. Some banks allow clients to withdraw funds before the term ends without penalties; fixed deposits enable customers to reduce expenses while increasing savings with each investment they accumulate.
Conclusion
By introducing RBI latest rules on fixed deposit rates and revising bulk deposit classification and encouraging banks to adjust FD rates and terms for depositors, the RBI aims to empower consumers while creating an efficient banking environment with transparent rates and terms that foster transparency and competition for banking consumers.
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