**Summary:**
This circular, RBI201819162 DBR.No.Ret.BC.3312.01.001201819, issued by the Reserve Bank of India (RBI) on April 04, 2019, announces a revision to the Bank Rate. Following the First Bi-Monthly Monetary Policy Statement 2019-20, the Bank Rate is reduced by 25 basis points, from 6.50% to 6.25%, effective immediately. Consequently, all penal interest rates on shortfalls in reserve requirements that are specifically linked to the Bank Rate are also revised.
The revised penal interest rates are as follows: Bank Rate plus 3.0 percentage points (9.25 per cent or 9.50 per cent) or Bank Rate plus 5.0 percentage points (11.25 per cent or 11.50 per cent) depending on the duration of shortfalls.
The circular is addressed to the Chairpersons and CEOs of all Scheduled and Non-Scheduled Banks. For inquiries, contact the Department of Banking Regulation, Central Office, 5th floor, Amar Building, Sir P.M. Road, Mumbai – 400001. The telephone number is 022-22603000, and the email ID is returnscorbi.org.in. The circular is signed by Dr. S.K. Kar, Chief General Manager. It refers to circular DBR.No.Ret.BC.2312.01.001201819 dated February 07, 2019, on the same subject.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to implicitly as RBI in the document.
Scheduled Banks: Banks included in the Second Schedule to the Reserve Bank of India Act, 1934
Non Scheduled Banks: Banks which are not included in the Second Schedule to the Reserve Bank of India Act, 1934
Bank Rate: The interest rate at which the Reserve Bank of India is ready to buy or rediscount bills of exchange or other commercial paper.
DBR.No.Ret.BC.2312.01.001201819: Reference number of a circular issued by the Department of Banking Regulation, RBI, dated February 07, 2019.
First BiMonthly Monetary Policy Statement 201920: A monetary policy statement issued by the Reserve Bank of India.
Department of Banking Regulation: The department within the Reserve Bank of India responsible for regulating banks.
Mumbai, Maharashtra: City in India where Central Office of Department of Banking Regulation is located.
RBI/2018-19/162
DBR.No.Ret.BC.33/12.01.001/2018-19 April 04, 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.23/12.01.001/2018-19 dated February
07, 2019 on the captioned subject.
2. As announced in the First Bi-Monthly Monetary Policy Statement 2019-20 of
April 04, 2019, the Bank Rate is revised downwards by 25 basis points from 6.50
per cent to 6.25 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
ब��कंग �व�नयमन �वभाग, क�द्र�य कायार्लय, 5वीं मंिजल, अमर भवन, सर पी एम रोड, मुंबई 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 points (9.25 per cent) or Bank Rate
requirements (9.50 per cent) or Bank plus 5.0 percentage points (11.25
(depending on duration Rate plus 5.0 per cent).
of shortfalls). percentage points
(11.50 per cent).