RBI's communication RBI/2025-26/134, DoR.RET.REC.341/12.01.001/2025-26, dated December 05, 2025, addresses all banks regarding changes in penal interest rates on shortfalls in CRR and SLR requirements. Following 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%, effective immediately. Consequentially, penal interest rates on CRR and SLR shortfalls are also revised. The existing penal interest rates are Bank Rate plus 3.0 percentage points (8.75%) or Bank Rate plus 5.0 percentage points (10.75%). The revised rates are Bank Rate plus 3.0 percentage points (8.50%) or Bank Rate plus 5.0 percentage points (10.50%), effective immediately. For further information, refer to circular DoR.RET.REC.22/12.01.001/2025-26 dated June 06, 2025. Manoranjan Padhy, Chief General Manager, is the contact person. The Department of Regulation, Central Office is located at 12th & 13th Floor, Nariman Bhavan, Nariman Point, Mumbai 400021.
Key Entities Referenced
Bank Rate: The benchmark interest rate used to calculate penal interest on CRR and SLR shortfalls.
CRR: Cash Reserve Ratio - the fraction of deposits banks are required to keep with the RBI.
SLR: Statutory Liquidity Ratio - the minimum percentage of deposits a commercial bank must hold in liquid assets.
Monetary Policy Statement 2025-26: A statement from the RBI that announces revisions to the Bank Rate.
DoR.RET.REC.22/12.01.001/2025-26: RBI circular referenced in the document.
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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