Master Circular: Interest Rates on Rupee Deposits for UCBs (2009)
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/80 · issued 01 Jul 2009 · ~2 min read
Quick answerRBI consolidated all instructions on interest rates for rupee deposits at Primary Urban Co-operative Banks as of June 30, 2009. The circular sets rates for savings, term, and current accounts, with conditions on premature withdrawals, unclaimed deposits, and exemptions. UCBs must follow specified rates in Annexes 1 and 2.
What changed
This is a master circular that consolidates and updates all previous instructions on interest rates for rupee deposits at UCBs up to June 30, 2009. It replaces the earlier master circular dated July 1, 2008. The content remains largely unchanged but is now presented in a single, updated document for easier reference.
What it means for you
UCBs must strictly adhere to the interest rate ceilings and conditions specified in the annexes for domestic, NRO, and NRE deposits. The circular reinforces RBI's directive power under Sections 21 and 35A of the Banking Regulation Act, 1949. Banks need to ensure their deposit products comply with these rates and rules to avoid regulatory action.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review and align all rupee deposit interest rates with the rates specified in Annex 1 (Domestic and NRO) and Annex 2 (NRE) of the master circular.
Update internal policies and systems to reflect conditions on premature withdrawals, unclaimed deposits, and interest on frozen accounts as per the circular.
Train staff on the definitions and prohibitions, especially regarding demand deposits, savings accounts, and term deposits.
Ensure compliance with rounding-off rules and margin requirements for advances against term deposits.
Who it affects
Primary (Urban) Co-operative Banks (UCBs), Deposit operations teams at UCBs, Compliance and risk management departments of UCBs, Auditors reviewing UCB deposit practices
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the key change in this master circular compared to the 2008 version?
This circular consolidates all instructions up to June 30, 2009, into one document, replacing the July 1, 2008 master circular. No new policy changes are introduced; it is an update for clarity and completeness.
Are UCBs allowed to set their own interest rates on deposits?
No, UCBs must pay interest only at rates specified in Annex 1 and Annex 2 of the circular, subject to conditions. RBI has issued directives under the Banking Regulation Act, 1949, to ensure uniformity.
Does this circular apply to NRE deposits?
Yes, Annex 2 specifically covers interest rates on NRE deposits. UCBs must follow those rates and conditions for non-resident external rupee accounts.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/80
UBD.No.BPD.MC.No. 11/13.01.000/2009-10
July 1, 2009
Chief Executive Officers of
All Primary (Urban) Co-operative Banks
Dear Sir,
Master Circular
Interest Rates on Rupee Deposits - UCBs
Please refer to our Master Circular UBD.BPD.MC.No.11/ 13.01.00/2008-09 dated July 1, 2008 on the captioned subject (Available at RBI website www.rbi.org.in). The enclosed Master Circular consolidates and updates all the instructions/guidelines on the subject up to June 30, 2009.
Yours faithfully,
( A.K.Khound)
Chief General Manager In-Charge
Encl: As above.
Master Circular
Interest Rates on Rupee Deposits
Contents
1
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/80 · issued 01 Jul 2009. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5140&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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