RBI MPC Meeting Dec 2025: Small Finance Banks Offer Highest FD Rates: Should You Lock In Before Repo Rate Cut?

The Reserve Bank of India (RBI) on Wednesday commenced its three-day Monetary Policy Committee (MPC) meeting in Mumbai, with financial markets closely watching for any indication of a potential rate cut. The meeting, scheduled from December 3 to 5, will culminate with the policy announcement by RBI Governor Sanjay Malhotra at 10 AM on Friday.

RBI MPC Meeting December 2025 Begins: Will RBI Cut Repo Rate?

Market analysts expect the central bank to maintain a cautious stance, balancing progress on inflation with the need to sustain economic growth and manage liquidity conditions.

"With inflation easing and expected to remain within the RBI's comfort band, and growth holding steady, the central bank now has room to consider another 25-basis-point cut - even as it remains cautious about food-price volatility and global risks," said Saurabh Jain, Co-founder & CEO, Stable Money.

Fixed Deposit (FD) Rates Ahead of RBI Repo Rate Cut Decision

Ahead of the MPC outcome, leading banks-particularly small finance banks-continue to offer elevated interest rates on fixed deposits (FDs) as of December 1, 2025. Despite inflation moderating and liquidity conditions remaining comfortable, retail deposit rates have stayed high.

Updated Highest FD Rates of Major Small Finance Banks For Regular & Senior Citizens

Bank Name	Tenure	Regular Citizen	Senior Citizen
Suryoday Small Finance Bank	5 years	8.05	8.1
Jana Small Finance Bank	5 years	8	8
ESAF Small Finance Bank	444 days	7.6	8.1
Utkarsh Small Finance Bank	2-3 years	7.5	8
Slice Small Finance Bank	1.5 - 3 years	7.5	7.5
Ujjivan Small Finance Bank	2 years	7.45	7.95
Shivalik Small Finance Bank	1.5 - 2 years	7.3	7.8
Equitas Small Finance Bank	888 days	7.3	7.8
RBL Bank	18 - 36 months	7.2	7.7
Bandhan Bank	2 - 3 years	7.2	7.7

Suryoday Small Finance Bank: 5-year FD offers 8.05% for regular customers and 8.1% for seniors.

Jana Small Finance Bank: 5-year FD provides 8% interest for both regular and senior citizens.

ESAF Small Finance Bank: 444-day FD gives 7.6% to regular customers and 8.1% to seniors.

Utkarsh Small Finance Bank: 2-3 year FD offers 7.5% for regular and 8% for senior citizens.

Slice Small Finance Bank: 1.5-3 year FD provides a flat 7.5% for both regular and senior citizens.

Ujjivan Small Finance Bank: 2-year FD offers 7.45% for regular customers and 7.95% for seniors.

Shivalik Small Finance Bank: 1.5-2 year FD gives 7.3% for regular customers and 7.8% for seniors.

Equitas Small Finance Bank: 888-day FD provides 7.3% for regular and 7.8% for senior citizens.

RBL Bank: 18-36 month FD offers 7.2% for regular customers and 7.7% for seniors.

Bandhan Bank: 2-3 year FD provides 7.2% for regular customers and 7.7% for senior citizens.

FD Interest Rates Calculation If RBI Consider Another Repo Rate Cut on 5 December

If the upcoming MPC meeting results in another rate cut, banks are likely to reduce FD rates further across popular maturities. In case of a 25-basis-point repo rate cut, we have typically seen banks adjust their fixed-deposit rates by 10-30 basis points over the following weeks. The extent and speed of this adjustment vary across banks depending on their liquidity position, credit growth, and overall funding requirements.

For instance, SBI's highest FD rate for regular citizens under the Amrit Vristhi scheme (444-day tenure) stood at 7.1% in January 2025. After consecutive MPC cuts through the year, this has gradually declined to 6.6%, reflecting how banks realign deposit rates in response to the broader interest-rate cycle.

Should You Invest in FD Before RBI Policy Decision? Experts Say This May Be the Best Time to Lock In Rates

"FDs booked before a rate cut continue to earn the contracted interest rate for the entire tenure - they do not get revised downward later. This gives investors a meaningful advantage if they choose to lock in medium-to long-term FDs before further cuts materialise," said expert Jain.

"For proactive and pragmatic investors seeking predictability and stable returns, this remains an ideal window to secure higher FD rates. Booking now helps avoid the risk of being forced into booking lower-return deposits in case of future rate cuts," he added.

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