Home › Circulars › RBI notification 13659

Payments Banks: Interest Rates Must Match Website Disclosure

Current · Source: Reserve Bank of India · official publication, rbi.org.in · ~1 min read
Quick answerFrom October 1, 2026, payments banks must pay deposit interest strictly as per the rates disclosed in advance on their website. This amends the Payments Banks Interest Rate on Deposits Directions, 2025, tightening transparency and preventing off‑schedule rates.
The rule, in the simplest words
How it plays out — a real example

Priya, the head of deposits at a payments bank, reviews the website's rate schedule ahead of the October 2026 deadline. She notices a savings account rate of 4% is listed, but her system is paying 4.1% for a promotional period. She immediately corrects the system to match the disclosed 4% to avoid a compliance breach.

What changed

RBI has amended the Payments Banks Interest Rate on Deposits Directions, 2025, replacing paragraph 6.3 in Chapter II. The new rule mandates that interest rates on deposits be strictly as per the schedule disclosed in advance on the bank's website. The amendment takes effect from October 1, 2026.

What it means for you

Payments banks must ensure their published interest rate schedule is accurate and current, as any deviation could be a compliance breach. This reinforces transparency and protects depositors by locking rates to public disclosures. Banks should audit their rate-setting and disclosure processes before the effective date.

What you must do

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 effect from October 1, 2026.

What does 'strictly as per the schedule' mean?

It means the interest rate you pay on any deposit must exactly match the rate listed on your website's disclosed schedule. No deviations are allowed.

Does this apply to all deposit types?

The direction covers all deposits offered by payments banks, as per the amended paragraph 6.3.

🧰 Tools — save, print, templates & related
Topics: Deposits / Interest Rates
Most relevant forTeller / Cashier / Customer Service OfficerPersonal Banker / Branch RM (Portfolio)Branch Sales / CASA Acquisition OfficerBranch Manager — Private Bank / SFBBranch Manager — PSU / Co-op / RRB (sanctioning powers)Branch Operations (Accounts / FD / CASA)
🛠 Banker’s toolkit — checklists & reply templates →
Key dataSee the live numbers behind this topic: Repo Rate Timeline, Credit & Deposit Growth — updated from official RBI data.
Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. Repo rate · CASA · Statutory Liquidity Ratio (SLR) · Deposit insurance (DICGC)
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
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Who does what — compliance checklist
💻 IT / Systems
  • Train staff and systems to prevent any off-schedule interest payments.
📜 Compliance
  • Review and update your deposit interest rate schedule on your website before October 1, 2026.
  • Align internal rate-setting processes to ensure actual rates paid match the disclosed schedule.
  • Monitor RBI notifications for any further clarifications on this amendment.
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 Website Disclosure” is: “Review and update your deposit interest rate schedule on your website before October 1, 2026.”.

  1. Circular: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=13659&Mode=0 -- Payments Banks: Interest Rates Must Match Website Disclosure
  2. Issued: 01 Aug 2026, 04:26 IST
  3. Action required: Review and update your deposit interest rate schedule on your website before October 1, 2026.
  4. Action required: Align internal rate-setting processes to ensure actual rates paid match the disclosed schedule.
  5. Action required: Train staff and systems to prevent any off-schedule interest payments.
  6. Action required: Monitor RBI notifications for any further clarifications on this amendment.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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.

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BankPulse Compliance Evidence Pack — generated 01 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=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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