This is a notification from the Reserve Bank of India (RBI), dated December 05, 2025, regarding changes to the penal interest rates on shortfalls in CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio) requirements.
The notification references circular DoR.RET.REC.22/12.01.001/2025-26 dated June 06, 2025, on the same subject.
As per the Monetary Policy Statement 2025-26 dated December 05, 2025, the Bank Rate has been revised downwards by 25 basis points, from 5.75% to 5.50%, with immediate effect. Consequentially, the penal interest rates for shortfalls in CRR and SLR, which are linked to the Bank Rate, have also been revised.
The existing penal interest rate was "Bank Rate plus 3.0 percentage points (8.75 per cent) or Bank Rate plus 5.0 percentage points (10.75 per cent)".
The revised penal interest rate (with immediate effect) is "Bank Rate plus 3.0 percentage points (8.50 per cent) or Bank Rate plus 5.0 percentage points (10.50 per cent)".
The notification is signed by Manoranjan Padhy, Chief General Manager. The Department of Regulation, Central Office is located at 12th & 13th Floor, Nariman Bhavan, Nariman Point, Mumbai 400021.
Key Entities Referenced
CRR: Cash Reserve Ratio, a percentage of a bank's total deposits required to be kept with the central bank.
SLR: Statutory Liquidity Ratio, the minimum percentage of deposits a commercial bank must maintain in liquid assets.
Bank Rate: The interest rate at which a central bank lends money to commercial banks.
Monetary Policy Statement 2025-26: A document outlining the central bank's approach to monetary policy for the specified period.
Mumbai: Location of the Reserve Bank of India's Central Office involved with the circular.
भारतीय र ऱििा बैंक
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2025-26/134
DoR.RET.REC.341/12.01.001/2025-26 December 05, 2025
All banks,
Madam / Sir,
Penal Interest on shortfall in CRR and SLR requirements - Change in Bank Rate
Please refer to our circular DoR.RET.REC.22/12.01.001/2025-26 dated June 06, 2025 on the
captioned subject.
2. As announced in the Monetary Policy Statement 2025-26 dated December 05, 2025, the
Bank Rate is revised downwards by 25 basis points from 5.75 per cent to 5.50 per cent with
immediate effect. Accordingly, all penal interest rates on shortfall in CRR and SLR
requirements, which are specifically linked to the Bank Rate, also stand revised as under:
Penal Interest Rates which are linked to the Bank Rate
Revised Rate
Item Existing Rate
(With immediate effect)
Penal interest rates on Bank Rate plus 3.0 Bank Rate plus 3.0 percentage points
shortfalls in reserve percentage points (8.75 per (8.50 per cent) or Bank Rate plus 5.0
requirements (depending on cent) or Bank Rate plus 5.0 percentage points (10.50 per cent)
duration of shortfall) percentage points (10.75 per
cent)
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
________________________________________________________________________________________________________________________________________________________
विवियमि विभाग, केंद्रीय कायाालय, 12िी ींऔर 13िी ींमींव़िल, िरीमि भिि, िरीमि पॉइींट, म ींबई 400021
Department of Regulation, Central Office, 12th & 13th Floor, Nariman Bhavan, Nariman Point, Mumbai 400021
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