MANU/RMIC/0014/2023

Ministry : Reserve Bank of India

Department/Board : Department of Regulation

Circular No. : DOR.RET.REC.101/12.01.001/2022-2023
                   RBI/2022-2023/174

Date : 08.02.2023

Notification/ Circulars Referred : Circular DOR.RET.REC.88/12.01.001/2022-23 dated December 07, 2022 MANU/RMIC/0178/2022;Monetary Policy Statement 2022-23 dated February 08, 2023 MANU/RPRL/0086/2023

Citing Reference:
Circular DOR.RET.REC.88/12.01.001/2022-23 dated December 07, 2022 MANU/RMIC/0178/2022  Referred

Monetary Policy Statement 2022-23 dated February 08, 2023 MANU/RPRL/0086/2023  Referred

Madam/Sir,

Change in Bank Rate

1. Please refer to our circular DOR.RET.REC.88/12.01.001/2022-23 dated December 07, 2022 on the captioned subject.

2. As announced in the Monetary Policy Statement 2022-23 dated February 08, 2023, the Bank Rate is revised upwards by 25 basis points from 6.50 per cent to 6.75 per cent with immediate effect.

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

Applicability

4. This circular is applicable to all the banks.

Yours faithfully,
(Prakash Baliarsingh)
Chief General Manager

Annex

Penal Interest Rates which are linked to the Bank Rate

Item	Existing Rate	Revised Rate (With immediate effect)
Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls).	Bank Rate plus 3.0 percentage points (9.50 per cent) or Bank Rate plus 5.0 percentage points (11.50 per cent).	Bank Rate plus 3.0 percentage points (9.75 per cent) or Bank Rate plus 5.0 percentage points (11.75 per cent).