Quick Summary
The Reserve Bank of India (RBI) has announced a reduction in penal interest rates applicable on shortfalls in Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), following a 25 basis point cut in the Bank Rate. According to the latest circular RBI/2025-26/134 (DoR.RET.REC.341/12.01.001/2025-26) issued on December 5, 2025, the Bank Rate has been revised downward from 5.75% to 5.50% with immediate effect. This change was announced in the Monetary Policy Statement 2025-26 released earlie
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FAQ :
The RBI has announced a reduction in penal interest rates applicable on shortfalls in Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
The reduction in penal interest rates is a consequence of a 25 basis point cut in the Bank Rate, which has been revised downward from 5.75% to 5.50%.
The revised penal interest rates are now Bank Rate + 3% (8.50%) or Bank Rate + 5% (10.50%), down from the previous rates of Bank Rate + 3% (8.75%) or Bank Rate + 5% (10.75%).
The revised penal interest rates take effect immediately for all scheduled banks.
The Bank Rate has been revised downward from 5.75% to 5.50%.
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