No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/588 · issued 05 Jun 2012 · ~1 min read
Quick answerRBI revised the Bank Rate to 9.00% effective April 17, 2012, and aligned the SSI refinance rate under Section 17(2)(bb) of the RBI Act to the same level. This impacts penal rates on reserve shortfalls and refinance costs for urban co-operative banks.
What changed
The Bank Rate was reduced from 9.50% to 9.00% effective April 17, 2012, as previously communicated in circular dated April 26, 2012. Consequently, the interest rate on refinance for small-scale industries under Section 17(2)(bb) read with Section 17(4)(c) of the RBI Act, 1934, was also revised to 9.00% from the earlier rate.
What it means for you
Urban co-operative banks will see lower penal interest rates on reserve requirement shortfalls, as these are linked to the Bank Rate. The reduced SSI refinance rate makes borrowing cheaper for banks under this facility, potentially easing liquidity for lending to small-scale industries.
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 the revised Bank Rate of 9.00% for calculating penal interest on reserve shortfalls.
Adjust the interest rate on SSI refinance availed under Section 17(2)(bb) to 9.00% with effect from April 17, 2012.
Communicate the rate change to relevant departments handling reserve compliance and refinance operations.
Review any outstanding refinance transactions to ensure correct application of the revised rate.
Who it affects
Primary (Urban) Co-operative Banks, Banks availing SSI refinance under Section 17(2)(bb) of RBI Act, Banks subject to penal rates on reserve requirement shortfalls
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the effective date for the revised Bank Rate and SSI refinance rate?
Both rates are effective from April 17, 2012, as per the circular.
Does this circular change any other rates besides the Bank Rate and SSI refinance?
The circular only mentions the Bank Rate and the SSI refinance rate under Section 17(2)(bb). Penal rates linked to the Bank Rate are also revised accordingly.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/588
UBD.BPD.(PCB).Cir.No.40/16.11.00/2011-12
June 5, 2012
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.32/16.11.00/2011-12 dated April 26, 2012 advising that the Bank Rate, stands revised from 9.50 per cent to 9.00 per cent with effect from April 17, 2012 and all penal interest rates on shortfalls in reserve requirements, which are specifically linked to the Bank Rate also stands revised. In this connection, we advise that 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 9.00 per cent with effect from April 17, 2012.
Yours faithfully,
(A.Udgata)
Chief General Manager-in-Charge
Encl: as above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/588 · issued 05 Jun 2012. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=7257&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.
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