Big changes in FDs of small finance banks. The Reserve Bank of India (RBI) has issued new and strict guidelines to bring more clarity, transparency and impartiality in the fixed deposits or term deposits of the country’s leading small finance banks. This step, taken on the basis of RBI’s Second Amendment Directive 2026, has been successfully implemented from October 2026. These new rules are considered a landmark step towards protecting the interests of crores of depositors holding term deposits in small finance banks across the country.
Depositors can clearly get all the information related to interest and services before making a deposit. It is to be ensured that banks do not mislead customers and follow the same policy for all depositors. Information related to interest and its changes will be updated from time to time. Under these guidelines, small finance banks will have to strictly follow some key aspects. It has been made mandatory for banks to clearly state the interest rates and terms and conditions to be availed before offering any deposit scheme. Interest rate changes in the case of large deposits or bulk deposits will have to be updated at regular intervals, so that customers can get real-time information.
Interest rates on fixed deposits will be uniform across branches of the bank. No arbitrary rate can be fixed for any particular branch. The system of special interest allowance for large deposits has been clarified by distinguishing between general deposits and large deposits, which will facilitate the financial management of banks. With these strict rules, small and medium depositors will feel secure with small finance banks. The problems of hidden terms or last-minute interest rate changes will end.
