Payments Banks: Interest Rates Must Match Disclosed Schedule
Not yet independently checked — please confirm with the official RBI source below
Source: Reserve Bank of India · RBI/2026-27/217 · issued FY 2026-27 · ~1 min read
Quick answerFrom October 1, 2026, payments banks must pay deposit interest exactly as per the rates they publish in advance on their website.
The rule, in the simplest words
Payments banks must pay interest exactly as they publish on their website before taking deposits.
The rule starts on October 1, 2026.
This replaces the earlier rule (paragraph 6.3) from the 2025 directions.
No extra interest can be given beyond the published rates.
Banks must keep their website rates updated and accurate at all times.
How it plays out — a real example
Priya, the compliance head at a payments bank, reviews the new RBI direction. She schedules a system check to compare the website's rate list with the rates applied in the core banking system, ensuring they match before the October 1 deadline. She also updates the internal policy to require immediate website updates whenever rates change.
What changed
The RBI’s Amendment Directions, 2026, effective October 1, 2026, replace paragraph 6.3 of the 2025 Payments Banks Interest Rate Directions, requiring that deposit interest rates be applied strictly according to the schedule disclosed in advance on the bank’s website.
What it means for you
Payments banks must ensure their actual deposit interest payouts align perfectly with the pre-disclosed rates on their websites. Any mismatch could be a regulatory breach, inviting supervisory action. Banks need to review their rate-setting and disclosure processes to ensure real-time accuracy and consistency across all channels.
What you must do
Audit your current deposit interest rate schedule against the rates actually paid to customers.
Update your website's rate disclosure promptly whenever rates change, before any new deposits are accepted.
Train operations and compliance teams on the strict adherence to the disclosed schedule from October 1, 2026.
Set up internal controls to flag any instance where a rate paid differs from the published schedule.
Review the 2025 Directions and this amendment to ensure full alignment in your policy documents.
Who it affects
Payments banks, Deposit operations teams, Compliance and risk functions, Customers of payments banks
❓ Common questions
When does the new rule take effect?
The amendment comes into force on October 1, 2026.
What exactly is the new requirement?
Interest rates on deposits must be strictly as per the schedule disclosed in advance on the bank's website.
Does this apply to all payments banks?
Yes, it applies to all payments banks governed by the 2025 Directions, as amended.
📜 Read the original circular — full text as issued by RBI
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/217 · issued FY 2026-27. The plain-English explanation above is BankPulse’s own independent summary.
Train operations and compliance teams on the strict adherence to the disclosed schedule from October 1, 2026.
📜 Compliance
Audit your current deposit interest rate schedule against the rates actually paid to customers.
Update your website's rate disclosure promptly whenever rates change, before any new deposits are accepted.
Set up internal controls to flag any instance where a rate paid differs from the published schedule.
Review the 2025 Directions and this amendment to ensure full alignment in your policy documents.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Payments banks, Deposit operations teams, Compliance and risk functions, Customers of payments banks), your first concrete step on “Payments Banks: Interest Rates Must Match Disclosed Schedule” is: “Audit your current deposit interest rate schedule against the rates actually paid to customers.” (RBI issued this FY 2026-27).
Circular: RBI/2026-27/217 -- Payments Banks: Interest Rates Must Match Disclosed Schedule
Issued: FY 2026-27
Action required: Audit your current deposit interest rate schedule against the rates actually paid to customers.
Action required: Update your website's rate disclosure promptly whenever rates change, before any new deposits are accepted.
Action required: Train operations and compliance teams on the strict adherence to the disclosed schedule from October 1, 2026.
Action required: Set up internal controls to flag any instance where a rate paid differs from the published schedule.
Action required: Review the 2025 Directions and this amendment to ensure full alignment in your policy documents.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 31 Jul 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=13659&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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