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2026-06-08 10:56:28 · pthandapani@vixio.com
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Press Releases - Reserve Bank of India

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TITLE: India's Reserve Bank Invites Comments on Draft Interest Rate on Deposits Amendment Directions BODY: On June 5, 2026, the Reserve Bank of India (RBI) released six draft Amendment Directions to provide greater flexibility to banks for pricing their Rupee bulk deposits while ensuring uniformity in disclosure of interest rates on deposits. The draft directions apply to commercial banks, small finance banks, regional rural banks, payment banks, local area banks, and urban co-operative banks. The RBI's initiative aims to modernise deposit pricing frameworks across the banking sector by allowing institutions greater discretion in setting interest rates on bulk deposits while maintaining consistent disclosure standards. This approach balances competitive flexibility with transparency requirements, enabling banks to respond more dynamically to market conditions while protecting depositor interests through standardised information provision. The amendment directions represent a significant regulatory update affecting multiple categories of deposit-taking institutions across India's financial system, from traditional commercial banks to specialised banking entities such as payment banks and regional rural banks. Regulated entities and members of the public or other stakeholders may submit comments and feedback on the draft Amendment Directions by June 20, 2026. Submissions can be made through the "Connect 2 Regulate" section on the RBI website by following the corresponding hyperlink provided against each document, or by email with the subject line "Feedback on [full name of the draft Amendment Directions (including the type of Regulated Entity)]". The RBI will review all submissions received during the consultation period before finalising the amendment directions.
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