The Bank Rate has been adjusted by 25 basis points from 6.50 per cent to 6.25 per cent with effect from August 02, 2017. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as follow:

Item

Revised Rate (Effective from August 02, 2017)

Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls)

Bank Rate plus 3.0 percentage points (9.25 per cent) or Bank Rate plus 5.0 percentage points (11.25 per cent).

Further, the Marginal Standing Facility (MSF) rate has been adjusted at 6.25 per cent with effect from August 02, 2017.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.