Penal Interest Rates which are linked to the Bank Rate

RBI/2012-13/449
DBOD.No.Ret.BC.84 /12.01.001/2012-13

March 19, 2013

All Scheduled Commercial Banks
& Local Area Banks

Dear Sir,

Bank Rate

As announced in the Mid-Quarter Review of Monetary Policy 2012-13, the Bank Rate stands adjusted by 25 basis points from 8.75 per cent to 8.50 per cent with effect from March 19, 2013.

2. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in Annex.

3. Please acknowledge receipt.

Yours faithfully

(Sudha Damodar)
Chief General Manager

Encl: as above

Annex

Penal Interest Rates which are linked to the Bank Rate

Item

Existing Rate

Revised Rate
(Effective from March 19, 2013)

Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls). Bank Rate plus 3.0 percentage points (11.75 per cent) or Bank Rate plus 5.0 percentage points (13.75 per cent). Bank Rate plus 3.0 percentage points (11.50 per cent) or Bank Rate plus 5.0 percentage points (13.50 per cent).

 

Tags: Bank RateBasis pointIndiaInterest rateMonetary policyPercentageReserve Bank of IndiaReserve requirement

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