The Reserve Bank of India issued a notification updating the penal interest charged to banks for shortfalls in cash reserve ratio (CRR) and statutory liquidity ratio (SLR) requirements that are linked to the Bank Rate, following a 25 basis point cut in the Bank Rate to 6.25 per cent with immediate effect. For CRR and SLR shortfalls (depending on the duration of the shortfall), the penal interest rates remain set at Bank Rate plus 3.0 percentage points or Bank Rate plus 5.0 percentage points, implying revised all-in rates of 9.25 per cent and 11.25 per cent, down from 9.50 per cent and 11.50 per cent.
Reserve Bank of India 2025-04-09
Reserve Bank of India cuts the Bank Rate to 6.25 per cent and revises penal interest on CRR and SLR shortfalls
The Reserve Bank of India updated the penal interest rates for banks' shortfalls in cash reserve ratio (CRR) and statutory liquidity ratio (SLR) requirements, following a 25 basis point reduction in the Bank Rate to 6.25%. The penal rates are now set at Bank Rate plus 3.0 percentage points or 5.0 percentage points, resulting in revised rates of 9.25% and 11.25%, respectively.