This is a circular issued by the Reserve Bank of India (RBI/2025-26/134, DoR.RET.REC.341/12.01.001/2025-26) on December 05, 2025, addressed to all banks, regarding a change in bank rate and its effect on penal interest rates for 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. Consequently, the penal interest rates on shortfalls in CRR and SLR 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 (immediate effect):** Bank Rate plus 3.0 percentage points (8.50%) or Bank Rate plus 5.0 percentage points (10.50%)
The circular references circular DoR.RET.REC.22/12.01.001/2025-26 dated June 06, 2025. For further information, contact the Department of Regulation, Central Office, 12th & 13th Floor, Nariman Bhavan, Nariman Point, Mumbai 400021. The Chief General Manager signing the circular is Manoranjan Padhy.
Key Entities Referenced
Monetary Policy Statement 2025-26: A statement outlining monetary policy, referenced as the basis for changes in bank rates.
CRR: Cash Reserve Ratio; mentioned in the context of penal interest on shortfalls.
SLR: Statutory Liquidity Ratio; mentioned in the context of penal interest on shortfalls.
Bank Rate: The rate used to calculate penal interest rates on shortfalls in CRR and SLR.
DoR.RET.REC.22/12.01.001/2025-26: Reference circular related to the subject matter.
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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