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ARTICLE · 07 MAY 2025

RBI Issues Master Direction To Consolidate Interest Rate On Deposits Applicable To Banks

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The Reserve Bank of India (RBI) has issued a new Master Direction (RBI/2025-26/134), effective April 1, 2025, titled "Reserve Bank of India (Interest Rate on Deposits) Directions, 2025."

IndiaFinance and Banking
SNG & Partners
SNG & Partners

The Reserve Bank of India (RBI) has issued a new Master Direction (RBI/2025-26/134), effective April 1, 2025, titled "Reserve Bank of India (Interest Rate on Deposits) Directions, 2025." This directive, DOR.SOG(SPE).REC.8/13.03.00/2025-26, dated April 01, 2025, consolidates all instructions related to interest rates on deposits for all banks operating in India.

By replaced the previous Master Directions from 2016, the RBI aims to provide a single, comprehensive document, whose key requirements are mentioned below.

  1. The banks must have a clear, comprehensive policy on interest rates. This policy must be approved by the bank's Board of Directors or a designated committee. This ensures that the decisions regarding interest rates are made at the highest level, with careful consideration and oversight. A well-drafted policy helps maintain uniformity and fairness in the rates offered to depositors across different branches and regions.

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