RBI/2019-20/240
DOR.No.Ret.BC.74/12.01.001/2019-20 May 22, 2020 All Scheduled and Non Scheduled Banks Dear Sir / Madam Change in Bank Rate Please refer to our circular DBR.No.Ret.BC.53/12.01.001/2019-20 dated March 27, 2020 on the captioned subject. 2. As announced in the Monetary Policy Statement 2020-21 dated May 22, 2020, the Bank Rate is revised downwards by 40 basis points from 4.65 per cent to 4.25 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. Yours faithfully, (Dr.S.K.Kar)
Chief General Manager Encl. : As above
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 (7.65 per cent) or Bank Rate plus 5.0 percentage points (9.65 per cent). | Bank Rate plus 3.0 percentage points (7.25 per cent) or Bank Rate plus 5.0 percentage points (9.25 per cent). | |