India's RBI allows differential rates on bulk deposits at banks based on liquidity risk

HDFC Bank

30/07/2026 16:20

July 30 (Reuters) - India's central bank on Thursday allowed banks to offer different interest rates on bulk deposits based on their liquidity risk profile, while reiterating that lenders cannot discriminate between similar deposits of the same size.
     
Here are some details:
The Reserve Bank of India said banks could offer different interest rates on bulk deposits based on the degree of liquidity risk associated with those deposits under the Liquidity Coverage Ratio framework.
From October 1, lenders must also publish bulk deposit rates on their websites on the morning of each business day, strengthening disclosure norms.
The changes follow media reports in May that HDFC Bank HDBK.NS, India's largest private lender, paid about 450 million rupees to the Maharashtra State Road Development Corporation 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 employees involved in setting deposit rates for Maharashtra State Road Development Corporation had engaged in business overreach, rather than acting for personal gain
RBI's final rules follow a draft released in June that sought public comments on the deposit pricing framework.

 (Reporting by Abhinav Parmar in Bengaluru; Editing by Shinjini Ganguli)
 ((Abhinav.Parmar@thomsonreuters.com;))