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SCB Lending & Deposit Rates: May 2026 Update

Deposits / Interest Rates
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📄 Source: Reserve Bank of India · Press Release prid 63049
Quick answerFresh loan WALR edged up to 8.51% in May 2026; 1-year median MCLR dropped to 8.50% in June. Deposit rates firmed on fresh term deposits (5.84%) but outstanding rates eased. EBLR share rose to 67.6%.

What changed

The weighted average lending rate on fresh rupee loans rose slightly to 8.51% in May from 8.50% in April. The 1-year median MCLR fell to 8.50% in June from 8.65% in May. The share of EBLR-linked loans increased to 67.6% at end-March 2026 from 65.5% at end-December 2025.

What it means for you

Banks are seeing a modest uptick in new loan pricing while outstanding loan rates remain sticky. The MCLR decline signals easing marginal costs, but deposit competition is pushing fresh term deposit rates higher. The shift to EBLR continues, reducing MCLR's influence on floating rate portfolios.

What you must do

Who it affects

All scheduled commercial banks (excluding RRBs and SFBs), Treasury and ALM desks, Retail and corporate lending teams, Deposit pricing committees

What is the current 1-year median MCLR?

It stood at 8.50% in June 2026, down from 8.65% in May 2026.

How has the share of EBLR loans changed?

EBLR-linked loans rose to 67.6% of total outstanding floating rate loans at end-March 2026, up from 65.5% at end-December 2025.

What is the trend in deposit rates?

Fresh term deposit WADTDR increased to 5.84% in May 2026 from 5.79% in April, while outstanding term deposit rates eased to 6.57% from 6.59%.

Test yourself

Quick self-check built only from the facts already on this page — tap a question to reveal the answer.

Q1. In one line, what does this circular do?

Fresh loan WALR edged up to 8.51% in May 2026; 1-year median MCLR dropped to 8.50% in June. Deposit rates firmed on fresh term deposits (5.84%) but outstanding rates eased. EBLR share rose to 67.6%.

Q2. Who does this circular apply to?

All scheduled commercial banks (excluding RRBs and SFBs), Treasury and ALM desks, Retail and corporate lending teams, Deposit pricing committees

Q3. What is the first thing you should do about it?

Review your bank's MCLR reset frequency to align with the declining trend.

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)

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Who does what — compliance checklist
📜 Compliance
  • Review your bank's MCLR reset frequency to align with the declining trend.
  • Monitor deposit pricing strategies as fresh term deposit rates rise.
  • Assess the impact of rising EBLR share on net interest margins.
  • Update ALM models to reflect the mixed movement in sectoral lending rates.
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 (All scheduled commercial banks (excluding RRBs and SFBs), Treasury and ALM desks, Retail and corporate lending teams, Deposit pricing committees), your first concrete step on “SCB Lending & Deposit Rates: May 2026 Update” is: “Review your bank's MCLR reset frequency to align with the declining trend.”.

  1. Circular: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63049 -- SCB Lending & Deposit Rates: May 2026 Update
  2. Issued: 30 Jun 2026, 15:46 IST
  3. Action required: Review your bank's MCLR reset frequency to align with the declining trend.
  4. Action required: Monitor deposit pricing strategies as fresh term deposit rates rise.
  5. Action required: Assess the impact of rising EBLR share on net interest margins.
  6. Action required: Update ALM models to reflect the mixed movement in sectoral lending rates.
  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.
AI-drafted · 1-model AI consensus fact-check · under the editorial review of our expert review panel · decoded & published by BankPulse · 30 Jun 2026, 15:46 IST
Official RBI source: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63049 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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