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RBI/2012-13/491
UBD.BPD.(PCB).Cir. No. 48 /16.11.00/2012-13
May 3, 2013
The Chief Executive Officer
All Primary (Urban) Co-operative Banks
Madam/Dear Sir,
Bank Rate
Please refer to our circular UBD.BPD.(PCB).Cir.No.44/16.11.00/2012-13 dated March 19, 2013 on the captioned subject. As announced in the Monetary Policy Statement for 2013-14, the Bank Rate stands adjusted by 25 basis points from 8.50 per cent to 8.25 per cent with effect from May 3, 2013.
2. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in the Annex. The interest rate on refinance for SSI under Section 17(2)(bb) read with Section 17(4)(c) of the Reserve Bank of India Act, 1934 also stands revised to 8.25 per cent with effect from May 3, 2013.
3. Please acknowledge receipt to the Regional Office concerned.
Yours faithfully,
(A. K. Bera)
Principal Chief General Manager
Encl: As above.
Annex
Penal Interest Rates which are linked to the Bank Rate
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Item
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Existing Rate
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Revised Rate
(Effective from May 3, 2013)
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Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls).
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Bank Rate plus 3.0 percentage points (11.50 per cent) or Bank Rate plus 5.0 percentage points (13.50 per cent).
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Bank Rate plus 3.0 percentage points (11.25 per cent) or Bank Rate plus 5.0 percentage points (13.25 per cent).
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