RBI Permits Differential Rates on Bulk Deposits
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- RBI allowed lenders to offer differential interest rates on bulk deposits based on their liquidity risk profile under the Liquidity Coverage Ratio (LCR) framework, effective October 1, 2025.
- Banks must publish bulk deposit interest rates on their websites by 10:00 am each business day (with a 10-minute grace period) and apply uniform rates across all branches for deposits of similar amount.
- The provision covers both domestic rupee deposits and rupee deposits of non-residents, and bans discrimination between deposits of the same size accepted on the same date.
- The final framework follows a draft proposal — the article dates it June 2026 — after which the central bank postponed implementation to October 1 to give lenders more compliance time.
- The rule changes follow reports that HDFC Bank paid Maharashtra State Road Development Corporation (MSRDC) ₹45 crore in alleged "marketing expenses" — reportedly a differential payment for higher interest than other customers received.
- HDFC Bank's board enquiry concluded employees engaged in "business overreach" but were not acting for personal gain.
Why it matters: Ordinary retail depositors get branch-level rate uniformity and same-day rate visibility, while the HDFC-MS RDC ₹45 crore backdrop suggests the rules formalize pricing after reports that large depositors received preferential rates under opaque arrangements.
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