The Reserve Bank of India (RBI) has proposed that Urban Cooperative Banks (UCBs) disclose their deposit interest rate schedules on their websites before the commencement of each business day.
The proposal is part of the draft Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Amendment Directions, 2026, released for public comments.
Under the existing Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Directions, 2025, UCBs are required to pay interest strictly according to rates disclosed in advance. The draft amendment seeks to modify this provision by specifying that the rates must be disclosed in advance on the bank’s website before the start of the business day.
According to RBI, the proposed amendment is aimed at ensuring greater uniformity in the disclosure of deposit interest rates while providing banks with greater flexibility in pricing their rupee bulk deposits.
The amendment proposes to replace Paragraph 6(3) of the existing Directions. While the current provision requires advance disclosure of deposit rates, the revised clause states that interest rates payable on deposits shall be strictly as per the schedule of rates disclosed in advance on the bank’s website before the commencement of the business day.
RBI has invited comments and feedback from regulated entities, stakeholders and members of the public on the draft amendment. Suggestions may be submitted by June 20, 2026.
