March 19, 2013
The Chief Executive Officer
All Primary (Urban) Co-operative Banks
Please refer to our circular UBD.BPD.(PCB).Cir.No.35/16.11.00/2011-12 dated January 30, 2013 on the captioned subject. 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. The interest rate on refinance for SSI under Section 17(2) (bb) read with Section 17(4) (c) of the Reserve Bank of India Act, 1934 also stands revised to 8.50 per cent with effect from March 19, 2013.
3. Please acknowledge receipt to the Regional Office concerned.
Chief General Manager-in-Charge
Encl: As above.
Penal Interest Rates which are linked to the Bank Rate
|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).|