Home › Circulars › RBI/2022-23/103

Bank Rate Hiked by 50 bps to 5.65%

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2022-23/103 · issued 05 Aug 2022 · ~1 min read

Quick answerRBI raised the Bank Rate by 50 basis points to 5.65%, effective immediately. This directly increases penal interest rates on reserve shortfalls, impacting banks' cost of non-compliance with CRR/SLR requirements.

What changed

The Bank Rate was revised upward from 5.15% to 5.65%, a 50 bps increase, effective August 5, 2022. Consequently, penal interest rates on reserve shortfalls—linked to the Bank Rate—also rose: the lower penal rate moved from 8.15% to 8.65%, and the higher rate from 10.15% to 10.65%.

What it means for you

Banks will face higher costs for failing to meet reserve requirements (CRR/SLR), as penal rates are now pegged to the higher Bank Rate. This reinforces the monetary tightening stance, encouraging stricter reserve management. Lenders should review their liquidity buffers to avoid these elevated penalties.

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 5.65% for calculating penal interest on reserve shortfalls.
Reassess liquidity positions to ensure CRR/SLR compliance and avoid the higher penal rates (8.65% or 10.65%).
Communicate the revised penal rates to relevant treasury and compliance teams immediately.
Monitor RBI announcements for any further rate changes linked to the Bank Rate.

Who it affects

All scheduled commercial banks, Treasury departments, Compliance and risk management teams, Banks with frequent reserve shortfalls

❓ Common questions

Regulatory timeline

Stated effective date effective August 5, 2022
Decoded by BankPulse 2026-06-18 05:38 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Status change: withdrawn 03 Aug 2026, 04:00 IST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 August 5, 2022?

The Bank Rate has been increased by 50 basis points to 5.65% per annum, with immediate effect.

How does this change affect penal interest on reserve shortfalls?

Penal rates linked to the Bank Rate have risen: the lower rate is now 8.65% (Bank Rate + 3%) and the higher rate is 10.65% (Bank Rate + 5%).

Which circular does this notification replace?

This circular updates the previous one dated June 8, 2022 (DOR.RET.REC.44/12.01.001/2022-23) on the same subject.

📜 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 #225: DOR.RET.REC.59/12.01.001/2022-23 — "Change in Bank Rate" dated August 5, 2022”

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

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As announced in the Monetary Policy Statement 2022-23 dated August 05, 2022 , the Bank Rate is revised upwards by 50 basis points from 5.15 per cent to 5.65 per cent with immediate effect. 3. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in the Annex . Yours faithfully, (Prakash Baliarsingh) Chief General Manager Encl.: As above Annex Penal Interest Rates which are linked to the Bank Rate Item Existing Rate Revised Rate (With immediate effect) Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls). Bank Rate plus 3.0 percentage points (8.15 per cent) or Bank Rate plus 5.0 percentage points (10.15 per cent). Bank Rate plus 3.0 percentage points (8.65 per cent) or Bank Rate plus 5.0 percentage points (10.65 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/2022-23/103 · issued 05 Aug 2022. 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=12372&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.