RBI Permits Differential Interest Rates on Bulk Deposits Based on LCR Run-off Rates
The revised provisions are scheduled to take effect from October 1, 2026, providing banks improved asset-liability management tools and greater pricing flexibility based on funding risk.
Under the framework, the threshold for bulk deposits remains ₹3 crore for Commercial Banks and Small Finance Banks, ₹1 crore for Regional Rural Banks and Tier 3 & 4 UCBs, and ₹15 lakh for Tier 1 & 2 Co-operative Banks.
To preserve fair practices, RBI mandated that uniform pricing rules continue for deposits of identical amounts accepted on the same calendar day, and interest rates must be published on official websites daily by 10:00 AM (with a grace window up to 10:10 AM).
Exam Perspective: LCR requires banks to store sufficient High-Quality Liquid Assets (HQLA) to withstand a 30-day cash outflow stress scenario; linking deposit rates to run-off risks helps mitigate liquidity imbalances.
Key Facts / Static GK
Reserve Bank of India Headquarters: Mumbai, Maharashtra
Reserve Bank of India Act: 1934
Q Practice Quiz — 5 August 2026
1. Which of the following statements regarding the RBI's updated Bulk Deposit Interest Rate Directions 2026 is/are correct?
Explanation: Statement I: The framework allows differential rates on bulk deposits based on LCR run-off rates from October 1, 2026. Statement II: Commercial banks and SFBs share a bulk deposit threshold of ₹3 crore, while RRBs have a threshold of ₹1 crore.
2. Under the revised CGSMFI 2.0 guidelines, what is the mandatory minimum combined allocation percentage of guarantee cover reserved for small and medium MFIs?
Explanation: Banks must now allocate at least 15% of the total guarantee cover under CGSMFI 2.0 to small and medium-sized MFIs, replacing the previous segregated structure of 5% and 10%.
3. Which agency constructed the new Income Tax Department office complex 'Aayakar Sindhu' inaugurated in Mumbai?
Explanation: The 'Aayakar Sindhu' office complex in Nariman Point, Mumbai, was constructed by the Central Public Works Department (CPWD).
4. Which Non-Banking Financial Company (NBFC) has partnered with Flipkart as the principal lending partner for 'Flipkart Pay Later'?
Explanation: PayU Finance, the NBFC arm of PayU, serves as the primary licensed lender for the Flipkart Pay Later digital credit solution.
5. Which founding document led to the formal establishment of the Arctic Council in 1996?
Explanation: The Arctic Council was officially established in 1996 through the adoption of the Ottawa Declaration.
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