No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-2014/283 · issued 20 Sep 2013 · ~2 min read
Quick answerRBI reduced the Bank Rate from 10.25% to 9.5% effective September 20, 2013, a 75 bps cut. This directly lowers penal interest rates on reserve shortfalls and the SSI refinance rate for Primary Urban Co-operative Banks.
What changed
The Bank Rate was reduced by 75 basis points from 10.25% to 9.5%, effective September 20, 2013. Consequently, penal interest rates on reserve requirement shortfalls were revised downward: the rate for shortfalls now ranges from Bank Rate plus 3 percentage points (12.50%) to Bank Rate plus 5 percentage points (14.50%). The interest rate on refinance for small-scale industries under Section 17(2)(bb) read with Section 17(4)(c) of the RBI Act also dropped to 9.5%.
What it means for you
For Urban Co-operative Banks, this Bank Rate cut reduces the cost of penal charges for reserve shortfalls, easing liquidity pressure. The lower SSI refinance rate may encourage lending to small-scale industries. Banks should update their systems to reflect the new penal rates and refinance terms immediately.
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 apply the revised Bank Rate of 9.5% from September 20, 2013.
Recalculate penal interest rates on reserve shortfalls using the new Bank Rate plus 3% (12.50%) or plus 5% (14.50%) as applicable.
Adjust the interest rate on SSI refinance to 9.5% for all eligible advances.
Communicate the changes to relevant departments and ensure compliance with the circular.
Who it affects
All Primary (Urban) Co-operative Banks, Branches handling reserve requirements and penal interest, Lending teams dealing with SSI refinance
❓ Common questions
Regulatory timeline
Stated effective dateeffective September 20, 2013
Decoded by BankPulse2026-06-18 12:35 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 September 20, 2013?
The Bank Rate has been reduced by 75 basis points from 10.25% to 9.5%.
How are penal interest rates on reserve shortfalls affected?
Penal rates are now Bank Rate plus 3% (12.50%) or plus 5% (14.50%), down from the previous 13.25% and 15.25% respectively.
Does this change impact SSI refinance rates?
Yes, the interest rate on refinance for small-scale industries under Section 17(2)(bb) read with Section 17(4)(c) of the RBI Act is revised to 9.5%.
📜 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)
RBI’s words: “Official withdrawal register entry #1020: UBD.BPD.(PCB).Cir.No.19/16.11.00/2013-14 — "Revision in Bank Rate" dated September 20, 2013”
📜 Read the original circular — full text as issued by RBI
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-2014/283 · issued 20 Sep 2013. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=8448&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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