Home › Circulars › RBI/2004-05/414

RIDF IV-VII Interest Rate Revision for Disbursed Amounts

No longer current — replaced by Updated Master Circular on Customer Service

Source: Reserve Bank of India · RBI/2004-05/414 · issued 07 Apr 2005 · ~1 min read

Quick answerRBI restructured lending and deposit rates for RIDF IV-VII disbursed amounts effective April 16, 2005. Deposit rates for IV-VI cut to 8% from 11.5%/11%; VII rate set at 7.5% from a variable 10-7%.

What changed

Effective April 16, 2005, RBI revised interest rates on amounts disbursed from RIDF IV to VII on or before October 31, 2003. Deposit rates for RIDF IV, V, and VI were reduced to 8% per annum from 11.5%, 11.5%, and 11% respectively. For RIDF VII, the rate was fixed at 7.5% per annum, replacing the earlier variable rate linked to shortfall in agricultural lending.

What it means for you

Banks will earn lower returns on their RIDF deposits for these tranches, impacting their interest income from these funds. The restructuring aligns rates with prevailing market conditions and government policy. Lenders should reassess their liquidity and investment strategies for these legacy deposits.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Update internal systems to reflect new deposit rates for RIDF IV-VII from April 16, 2005.
Communicate revised rates to relevant treasury and finance teams for accurate interest accrual.
Review impact on bank's interest income and adjust financial projections accordingly.
Ensure compliance with RBI circular RPCD. Plan. BC. 91/04.09.42/2004-05 for all affected accounts.

Who it affects

All domestic scheduled commercial banks with RIDF IV-VII deposits, Treasury departments managing RIDF investments, Finance and accounting teams handling interest calculations

❓ Common questions

Regulatory timeline

Stated effective date effective April 16, 2005
Decoded by BankPulse 2026-06-19 21:04 IST
Superseded by — Updated Master Circular on Customer Service
Status change: superseded 05 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Which RIDF tranches are affected by this rate revision?

The revision applies to amounts disbursed on or before October 31, 2003 from RIDF IV, V, VI, and VII.

What are the new deposit rates for RIDF IV, V, and VI?

All three tranches now earn 8% per annum, down from 11.5% for IV and V, and 11% for VI.

How does the RIDF VII rate change?

RIDF VII rate is fixed at 7.5% per annum, replacing the earlier variable rate that ranged between 10% and 7% based on agricultural lending shortfall.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Superseded by Updated Master Circular on Customer Service

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 7 kb ) Rural Infrastructure Development Fund (RIDF) – Rates of Interest in respect of disbursed amounts of RIDF IV to VII RBI/2004-05/414 RPCD. Plan. BC. 91 /04.09.42/2004-05 April 7, 2005 The Chairman / Managing Director/ Chief Executive Officer (All Domestic Scheduled Commercial Banks) Dear Sir/ Madam, Rural Infrastructure Development Fund (RIDF) – Rates of Interest in respect of disbursed amounts of RIDF IV to VII Please refer to our circular No. RPCD. Plan. BC. 43/ 04.09.41/ 2003-04 dated November 4, 2003 communicating the revised interest rates on deposits and advances in respect of undisbursed amounts under RIDF-IV to IX with effect from November 1, 2003. It has been decided, with the approval of the Government of India, to restructure the lending and deposit rates in respect of the amounts disbursed on or before October 31, 2003 out of RIDF IV to VII with effect from April 16, 2005. The revised rates would be as under: RIDF Deposit rates payable to banks (per cent per annum) Existing Revised IV 11.5 8.0 V 11.5 8.0 VI 11.0 8.0 VII Interest rate linked to shortfall in agricultural lending (varying between 10 and 7 per cent) 7.5 3. Please acknowledge receipt. Yours faithfully, (C.S. Murthy) Chief General Manager-in-Charge 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2004-05/414 · issued 07 Apr 2005. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2193&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.