The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Directions, 2025.
The following has been amended namely:-
• Chapter III, which states, “Domestic Rupee Deposits”
• Interest Rate on Domestic Current Account: No interest shall be paid on deposits held in current accounts. Provided that balances lying in current account standing in the name of a deceased individual depositor or sole proprietorship concern shall attract interest from the date of death of the depositor till the date of repayment to the claimant(s) at the rate of interest applicable to savings deposit as on the date of payment.
• Interest Rate on Domestic Savings Deposit:- In addition to the conditions laid down in paragraph 7 of these Directions, interest on domestic rupee savings deposit shall be subject to the following:
• Interest shall be calculated on a daily product basis as under: (i) A uniform interest rate shall be set on balance up to ₹1 lakh, irrespective of the amount in the account within this limit.
• Differential rates of interest may be provided for any end-of-day savings bank balance exceeding ₹1 lakh.
[Notification no: RBI/DOR/2025-26/276 DOR.SOG(SPE).REC.195/13.03.00/ 2025-26]
