Home › Circulars › RBI/2013-14/282

Bank Rate Cut by 75 bps to 9.50%

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2013-14/282 · issued 20 Sep 2013 · ~2 min read

Quick answerRBI reduced the Bank Rate from 10.25% to 9.50% effective September 20, 2013, a 75 bps cut. Penal interest rates on reserve shortfalls linked to Bank Rate also dropped accordingly.

What changed

The Bank Rate was lowered by 75 basis points from 10.25% to 9.50%, effective September 20, 2013. Consequently, penal interest rates on reserve requirement shortfalls, which are tied to the Bank Rate, were revised downward: the rate for shortfalls now stands at Bank Rate plus 3.0 percentage points (12.50%) or plus 5.0 percentage points (14.50%), down from the earlier 13.25% and 15.25%.

What it means for you

This reduction in the Bank Rate directly lowers the cost of penal interest for banks that fall short of reserve requirements, easing a compliance cost. For lenders, it signals a slightly looser monetary stance, potentially reducing overall funding costs and encouraging more lending. However, the impact is limited to penalty rates and does not directly affect other policy rates like the repo rate.

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 9.50% for calculating penal interest on reserve shortfalls.
Communicate the revised penal interest rates (12.50% and 14.50%) to relevant treasury and compliance teams.
Review any loan or deposit products that reference the Bank Rate to ensure alignment with the new rate.
Monitor RBI announcements for any further changes to policy rates that may follow this adjustment.

Who it affects

All scheduled commercial banks, Local area banks, Treasury and compliance departments, Banks with frequent reserve shortfalls

❓ Common questions

Regulatory timeline

Stated effective date effective September 20, 2013
Decoded by BankPulse 2026-06-18 12:35 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST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 September 20, 2013?

The Bank Rate has been reduced from 10.25% to 9.50%, a cut of 75 basis points.

How does this change affect penal interest on reserve shortfalls?

Penal interest rates linked to the Bank Rate have been revised: for shortfalls, the rate is now Bank Rate plus 3.0 percentage points (12.50%) or plus 5.0 percentage points (14.50%), down from the previous 13.25% and 15.25%.

Does this Bank Rate cut impact other policy rates like the repo rate?

No, this circular only adjusts the Bank Rate and the penal rates tied to it. Other policy rates remain unchanged as per this notification.

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

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #1017: DBOD.No.Ret.BC.56/12.01.001/2013-14 — "Bank Rate" dated September 20, 2013”

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

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As announced in the Press Release 2013-2014/604 dated September 20, 2013 , the Bank Rate stands adjusted by 75 basis points from 10.25 per cent to 9.50 per cent with effect from September 20, 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 Annex . Yours faithfully (Sudha Damodar) Chief General Manager Encl: as above Annex Penal Interest Rates which are linked to the Bank Rate Item Existing Rate Revised Rate (Effective from September 20, 2013) Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls). Bank Rate plus 3.0 percentage points (13.25 per cent) or Bank Rate plus 5.0 percentage points (15.25 per cent). Bank Rate plus 3.0 percentage points (12.50 per cent) or Bank Rate plus 5.0 percentage points (14.50 per cent). 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/2013-14/282 · issued 20 Sep 2013. 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=8446&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.