RBI/2013-14/475
RPCD.CO.RRB.RCB.BC. No. 82/03.05.33/2013-14
January 29, 2014
The Chairmen/Chief Executive Officers,
All Regional Rural Banks / State and Central Co-operative Banks
Dear Sir/Madam,
Bank Rate
Please refer to our circular RPCD.CO.RRB.RCB.BC.No.50/03.05.33/2013-14 dated October 30, 2013 on the captioned subject.
2. Consequent to the increase in the policy repo rate under the Liquidity Adjustment Facility (LAF) as announced in the Third Quarter Review of Monetary Policy 2013-14 dated January 28, 2014, the Bank Rate stands adjusted by 25 basis points from 8.75 per cent to 9.00 per cent with effect from January 28, 2014.
3. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in Annex.
4. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully
(A.Udgata)
Principal Chief General Manager
Encl: as above
Annex
Penal Interest Rates which are linked to the Bank Rate
|
Item |
Existing Rate |
Revised Rate |
|
Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls). |
Bank Rate plus 3.0 percentage points (11.75 per cent) or Bank Rate plus 5.0 percentage points (13.75 per cent). |
Bank Rate plus 3.0 percentage points (12.00 per cent) or Bank Rate plus 5.0 percentage points (14.00 per cent). |
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