RBI has proposed changes in bulk deposit rules. Its purpose is to give banks more freedom in setting interest rates and increase transparency. Banks will have to disclose the rates on their website daily, so that customers can get better interest.
New Delhi: The Reserve Bank of India (RBI) has recently issued a draft proposal to change the rules related to ‘bulk deposits’ i.e. deposits of large amounts. Its main objective is to give banks more freedom in setting interest rates and to make things more transparent for customers. Common people and experts can give their opinion on this new proposal till June 20, 2026. Only after this the final decision on its implementation will be taken.
What’s in the New Testament?
Bulk deposit means the large amount that customers deposit in banks. The aim of the new rules is to give banks more freedom to set interest rates on these deposits and to create a uniform system regarding interest rates. Now banks will have to clearly display the complete list of interest rates on their websites before the start of every business day. Banks will be able to pay interest only at pre-determined and announced rates. This will make it easier for customers to compare interest rates of different banks.
What will be the impact on FD?
This will not have any immediate impact on small depositors. This change has been made especially keeping in mind the large deposits. But, in the coming time, small depositors can also get benefit from this. When banks will get freedom to set interest rates on large amounts, competition among them will increase. Because of this competition, retail investors can get more competitive and better interest rates on their fixed deposits (FD) in future.
It is necessary to check frequently
Now, after making an FD once, it will not be right to sit comfortably for years. Earlier the interest rates in almost all banks were the same, but now this will not be the case. There can be a big difference in the rates depending on the amount of deposit, period and the needs of the bank at that time. Therefore, before renewing your FD, definitely compare the rates of different banks.
Remember these things before investing
Don’t make some mistakes while investing in a hurry to get more interest. Be sure to check not only the interest rate on the deposit you are investing in, but also the bank’s penalty for premature withdrawal of money. Also check if the bank offers sweep-in FD facility. You should also know when the interest will be paid and what are the rules for withdrawing money in emergency.