The Reserve Bank of India (RBI) is revising the Bank Rate upwards by 35 basis points from 6.15 per cent to 6.50 per cent with immediate effect as announced in the Monetary Policy Statement 2022-23 dated 7 December 2022.
Earlier the RBI announced Bank Rates with their Circular dated 30 September 2022 on the captioned subject.
The Central Bank stated that this circular is applicable to all banks.
The RBI disclosed that all penal interest rates on shortfall in reserve requirements, specifically linked to the Bank Rate, also stand revised as under:
Penal Interest Rates which are linked to the Bank Rate
(With immediate effect)
Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls).
Bank Rate plus 3.0 percentage points (9.15 per cent) or Bank Rate plus 5.0 percentage points (11.15 per cent).
Bank Rate plus 3.0 percentage points (9.50 per cent) or Bank Rate plus 5.0 percentage points (11.50 per cent).