**Summary:**
This circular, RBI201819199 DBR.No.Ret.BC.4412.01.001201819 dated June 06, 2019, issued by the Reserve Bank of India (RBI), announces a revision in the Bank Rate. As stated in the Second Bi-Monthly Monetary Policy Statement 2019-20 of June 06, 2019, the Bank Rate is reduced by 25 basis points, from 6.25% to 6.00%, effective immediately. Consequently, all penal interest rates on shortfalls in reserve requirements that are specifically linked to the Bank Rate are also revised. The penal interest rates on shortfalls in reserve requirements are revised from Bank Rate plus 3.0 percentage points (9.25%) or Bank Rate plus 5.0 percentage points (11.25%) depending on the duration of shortfalls to Bank Rate plus 3.0 percentage points (9.00%) or Bank Rate plus 5.0 percentage points (11.00%). The circular is addressed to the Chairpersons and CEOs of all Scheduled and Non-Scheduled Banks. For further information, contact Shrimohan Yadav, Chief General Manager, Department of Banking Regulation, Central Office, 5th floor, Amar Building, Sir P.M. Road, Mumbai – 400001. Tel No: 022-22603000. Email ID: returnscorbi.org.in. This circular refers to the previous circular DBR.No.Ret.BC.3312.01.001201819 dated April 04, 2019, on the same subject.
Key Entities Referenced
Bank Rate: The official interest rate at which a nation's central bank lends money to commercial banks.
RBI: Reserve Bank of India, the central bank of India.
Scheduled and Non Scheduled Banks: All commercial banks in India, categorized based on their listing in the Second Schedule of the RBI Act, 1934.
DBR.No.Ret.BC.4412.01.001201819: Reference number of the RBI circular being analyzed.
Second Bi-Monthly Monetary Policy Statement 2019-20: A statement released by the RBI regarding monetary policy.
Shrimohan Yadav: Chief General Manager at the Reserve Bank of India.
Department of Banking Regulation: A department of the Reserve Bank of India.
Mumbai, Maharashtra: City in India where the Central Office of Department of Banking Regulation is located.
RBI/2018-19/199
DBR.No.Ret.BC.44/12.01.001/2018-19 June 06, 2019
The Chairperson / CEOs of all Scheduled and Non Scheduled Banks
Dear Sir / Madam,
Change in Bank Rate
Please refer to our circular DBR.No.Ret.BC.33/12.01.001/2018-19 dated April 04,
2019 on the captioned subject.
2. As announced in the Second Bi-Monthly Monetary Policy Statement 2019-20
of June 06, 2019, the Bank Rate is revised downwards by 25 basis points from
6.25 per cent to 6.00 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
(Shrimohan Yadav)
Chief General Manager
Encl. : As above
ब��कंग �व�नयमन �वभाग, क�द्र�य कायार्लय, 5वीं मंिजल, अमर भवन, सर पी एम रोड, मुम्बई 400001
Department of Banking Regulation, Central Office, 5th floor, Amar Building, Sir P.M. Road, Mumbai-400001
टेल�फोन/Tel No:022-22603000 Email ID: returnsco@rbi.org.inAnnex
Penal Interest Rates which are linked to the Bank Rate
Item Existing Rate Revised Rate
(With immediate effect)
Penal interest rates on Bank Rate plus 3.0 Bank Rate plus 3.0 percentage
shortfalls in reserve percentage points (9.25 points (9.00 per cent) or Bank
requirements per cent) or Bank Rate Rate plus 5.0 percentage points
(depending on duration plus 5.0 percentage (11.00 per cent).
of shortfalls). points (11.25 per cent).