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RBI Issues Third Amendment Directions for Commercial Banks on Interest Rates
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RBI Issues Third Amendment Directions for Commercial Banks on Interest Rates

September 1, 2026

The Reserve Bank of India has amended interest rate regulations for Commercial Banks, facilitating the temporary removal of the ceiling on fresh deposits.

RBI Issues Third Amendment Directions for Commercial Banks on Interest Rates

On August 25, 2026, the Reserve Bank of India (RBI) published the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Third Amendment Directions, 2026. This amendment updates earlier regulations set in 2025 concerning interest rates on new deposits.

A significant aspect of this amendment is the temporary withdrawal of the interest rate ceiling on fresh deposits, designed to bolster the competition among commercial banks. The updates provided also correlate with changes made as of June 17, 2026, reflecting the dynamic nature of the financial sector.

Lawyers involved in banking and finance should take note of this change, as it may have substantial implications for how commercial banks structure their offerings, potentially leading to adjusted interest rates that could affect their deposit bases significantly.

Citations

  • Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Third Amendment Directions, 2026
Practice Areas:banking

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