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
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience.
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%.
CAclubindia
