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RRBs: Option for Shorter Interest Payment Intervals on Deposits

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/393 · issued 02 Dec 2013 · ~1 min read
Quick answerRBI now allows RRBs to pay interest on rupee savings and term deposits at intervals shorter than quarterly, aligning with core banking capabilities. This replaces the earlier quarterly-or-longer requirement.

What changed

Earlier, RRBs were required to pay interest on savings and term deposits at quarterly or longer rests. Now, with core banking platforms in place, RBI has given RRBs the option to pay interest at intervals shorter than quarterly.

What it means for you

RRBs can now offer more frequent interest payouts, potentially making their deposit products more attractive to customers. This flexibility may help RRBs compete better with other banks, but they must ensure their systems can handle shorter compounding cycles without operational issues.

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

Who it affects

Regional Rural Banks (RRBs), Depositors with rupee savings and term deposits at RRBs, RRB IT and operations teams

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this circular apply to FCNR(B) deposits?

No, the existing guidelines for FCNR(B) deposits remain unchanged.

Can RRBs continue to pay interest at quarterly rests if they prefer?

Yes, the circular gives RRBs an option to pay at shorter intervals, but they are not mandated to change from quarterly rests.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #973: RPCD.CO.RRB.BC.NO.62/03.05.33/2013-14 — "Periodicity of Payment of Interest on Rupee Savings / Term Deposits" dated December 2, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/393 RPCD.CO.RRB.BC.NO. 62 /03.05.33/2013-14 December 2, 2013 The Chairmen Regional Rural Banks Dear Sir/Madam, Periodicity of Payment of Interest on Rupee Savings/Term Deposits Please refer to paragraph 23 of the Second Quarter Review of Monetary Policy 2013-14 announced on October 29, 2013 ( extract enclosed ) on periodicity of payment of interest on savings and term deposits. 2. In this connection, a reference is also invited to paragraph 2 (ii) of our circular DBOD.No.Dir.BC.46/13.03.00/2000-2001 dated November 4, 2000 on 'Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO), Non-Resident Special Rupee (NRSR) and Non-Resident (External) (NRE) Accounts' whereby Regional Rural Banks (RRBs) were advised to pay interest on savings and term deposits at quarterly or longer rests. As RRBs are functioning on core banking platform, it has been decided to review the above instructions. Accordingly, RRBs will now have the option to pay interest on Rupee savings and term deposits at intervals shorter than quarterly intervals. 3. The above revised instructions are applicable to domestic Rupee deposits including Ordinary Non-Resident (NRO) and Non-Resident (External) (NRE) savings and term deposits. As regard FCNR(B) deposits, the existing guidelines issued in this regard will remain unchanged. 4. All other instructions in this regard, as amended from time to time, will remain unchanged. Yours faithfully, (A.Udgata) Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/393 · issued 02 Dec 2013. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8612&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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