Bank Rate Hiked by 200 bps to 10.25% for RRBs and Co-op Banks
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/146 · issued FY 2013-14 · ~1 min read
Quick answerRBI raised the Bank Rate from 8.25% to 10.25% effective July 15, 2013. This directly increases penal interest rates on reserve shortfalls for RRBs and cooperative banks, now ranging from 13.25% to 15.25% depending on shortfall duration.
What changed
The Bank Rate was increased by 200 basis points from 8.25% to 10.25% effective July 15, 2013. Consequently, all penal interest rates linked to the Bank Rate—specifically those on shortfalls in reserve requirements—were revised upward as per the annex.
What it means for you
For RRBs and cooperative banks, the cost of failing to meet reserve requirements (CRR/SLR) has risen sharply. Penal rates now start at 13.25% (Bank Rate + 3%) and go up to 15.25% (Bank Rate + 5%), depending on how long the shortfall persists. This tightens liquidity discipline and increases penalty costs for non-compliance.
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 new Bank Rate of 10.25% for all linked calculations.
Review and revise penal interest rate schedules for reserve shortfalls to the new slabs (13.25% and 15.25%).
Communicate the change to treasury and compliance teams to ensure accurate penalty application.
Monitor reserve maintenance closely to avoid shortfalls and higher penal costs.
Who it affects
All Regional Rural Banks (RRBs), State and Central Co-operative Banks, Treasury and compliance departments of these banks
❓ Common questions
Regulatory timeline
Stated effective dateeffective July 15, 2013
Decoded by BankPulse2026-06-18 13:47 IST
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 new Bank Rate effective from July 15, 2013?
The Bank Rate has been increased by 200 basis points from 8.25% to 10.25%.
How do the revised penal interest rates on reserve shortfalls work?
Penal rates are now Bank Rate plus 3 percentage points (13.25%) or Bank Rate plus 5 percentage points (15.25%), depending on the duration of the shortfall.
Which banks are covered by this circular?
All Regional Rural Banks (RRBs) and State/Central Co-operative Banks are required to comply.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/146 · issued FY 2013-14. 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=8250&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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