The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Directions, 2025.
The following has been stated: -
•The Directions provide a framework for Regional Rural Banks (RRBs) on interest rates for domestic, non-resident, and foreign currency deposits, effective from their publication on the RBI website.
•Banks must have a board-approved policy on interest rates, penalties for premature withdrawals, and ensure uniformity, transparency, and supervisory compliance across all branches.
•Domestic deposits include current, savings, term, and composite cash credit accounts, with provisions for additional interest for staff, senior citizens, and special deposit schemes.
•NRE, NRO, FCNR(B), and RFC accounts have specific interest rate rules, linked to benchmarks, with defined provisions for premature withdrawal, conversion, and deceased depositors.
•Prohibitions include incentives, lotteries, unethical deposit mobilization, and certain accounts for non-individuals, while exemptions cover government schemes, co-operatives, SHGs, and specific tax-exempt institutions; prior directions are repealed, but actions under them remain valid.
•These directions shall come into effect from November 28, 2025.
[Notification No.: RBI/DOR/2025-26/252 DOR.SOG(SPE).REC.171/13.03.00/ 2025-26]
