This is a notification (RBI/2025-26/134, DoR.RET.REC.341/12.01.001/2025-26) from the Reserve Bank of India, dated December 05, 2025, addressed to all banks regarding changes to the penal interest rates on shortfalls in CRR and SLR requirements due to a change in the Bank Rate. 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% to 5.50%, effective immediately.
Consequently, the penal interest rates on shortfalls in reserve requirements are revised as follows:
* Existing Rate: Bank Rate plus 3.0 percentage points (8.75%) or Bank Rate plus 5.0 percentage points (10.75%).
* Revised Rate (with immediate effect): Bank Rate plus 3.0 percentage points (8.50%) or Bank Rate plus 5.0 percentage points (10.50%).
For further details, refer to circular DoR.RET.REC.22/12.01.001/2025-26 dated June 06, 2025. The communication is signed by Manoranjan Padhy, Chief General Manager. The Department of Regulation, Central Office is located on the 12th & 13th Floor, Nariman Bhavan, Nariman Point, Mumbai 400021.
Key Entities Referenced
Monetary Policy Statement 2025-26: Reference document containing announcements impacting the bank rate and penal interest rates.
CRR: Cash Reserve Ratio, a percentage of a bank's total deposits that it is required to keep with the Reserve Bank of India.
SLR: Statutory Liquidity Ratio, the minimum percentage of deposits a commercial bank has to maintain in the form of liquid assets.
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.
Reserve Bank of India: India's central bank, responsible for regulating the banking system and implementing monetary policy.
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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