January 28, 2014
All Scheduled Commercial Banks
& Local Area Banks
Please refer to our circular DBOD.No.Ret.BC.64/12.01.001/2013-14 dated October 29, 2013 on the subject.
2. Consequent to the increase in the policy repo rate under the Liquidity Adjustment Facility (LAF) as announced in the Third Quarter Review of Monetary Policy 2013-14 dated January 28, 2014, the Bank Rate stands adjusted by 25 basis points from 8.75 per cent to 9.0 per cent with effect from January 28, 2014.
3. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in Annex.
4. Please acknowledge receipt.
Chief General Manager
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 (12.00 per cent) or Bank Rate plus 5.0 percentage points (14.00 per cent).|
Tags: Bank Rate, Central bank, Interest, Liquidity Adjustment Facility, Monetary policy, Percentage, Repurchase agreement, Reserve requirement