Master Circular: Interest Rates on Rupee Deposits for Urban Co-op Banks
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/42 · issued 01 Jul 2011 · ~1 min read
Quick answerRBI consolidated all instructions on interest rates for rupee deposits at Primary Urban Co-operative Banks, effective July 1, 2011. Rates must follow Annex 1 & 2. No bank may pay interest except as specified, covering savings, term, and current accounts.
What changed
This Master Circular updates and consolidates all prior guidelines on interest rates for rupee deposits issued up to June 30, 2011. It replaces the previous master circular dated July 1, 2010. The key change is the consolidation itself, ensuring a single reference document for compliance.
What it means for you
Urban co-operative banks must strictly adhere to the prescribed interest rate ceilings and conditions in Annex 1 & 2 for domestic, NRO, and NRE deposits. Non-compliance could invite regulatory action under Sections 21 and 35A of the Banking Regulation Act. Banks should review their deposit products to ensure alignment with the updated circular.
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 all deposit products (savings, term, current) to ensure interest rates match Annex 1 & 2.
Update internal policies and system parameters to reflect the consolidated instructions.
Train staff on definitions and conditions, especially for premature withdrawals and unclaimed deposits.
Maintain records of compliance for RBI inspection.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/42
UBD.PCB. MC.No.11/13.01.000/2011-12
July 1, 2011
Chief Executive Officers of
All Primary (Urban) Co-operative Banks
Dear Sir,
Master Circular
Interest Rates on Rupee Deposits – Primary (Urban) Co-operative Banks
Please refer to our Master Circular UBD.BPD.MC.No.11/ 13.01.00/2010-11 dated July 1, 2010 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 issued up to June 30, 2011 and mentioned in the Appendix .
Yours faithfully,
(Uma Shankar)
Chief General Manager
Encl: As above
Master Circular
Interest Rates on Rupee Deposits
Contents
1
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/42 · issued 01 Jul 2011. 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=6526&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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