The Reserve Bank of India (RBI) has allowed banks more flexibility in setting interest rates on bulk deposits. Banks can now offer different interest rates based on how stable these deposits are under the Liquidity Coverage Ratio (LCR) rules.
However, RBI has kept an important rule in place—interest rates must remain uniform for similar deposits. This means banks cannot offer different rates to customers for the same deposit amount on the same day across branches.
Banks can only vary rates for bulk deposits if there is a valid difference in how those deposits are treated under LCR (such as different withdrawal risks). This flexibility applies to both domestic rupee deposits and rupee deposits from non-residents.
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