Home › Circulars › RBI/2022-23/123

Bank Rate Hiked by 50 bps to 6.15%

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2022-23/123 · issued 30 Sep 2022 · ~1 min read

Quick answerRBI raised the Bank Rate by 50 basis points to 6.15% effective September 30, 2022. This directly increases penal interest rates on reserve shortfalls for all banks, raising the cost of non-compliance.

What changed

The Bank Rate was revised upward by 50 basis points from 5.65% to 6.15%, effective immediately. Consequently, penal interest rates on reserve requirement shortfalls, which are linked to the Bank Rate, also increased: the lower penal rate moved from 8.65% to 9.15%, and the higher penal rate from 10.65% to 11.15%.

What it means for you

Banks will now face higher penalty charges for failing to maintain required reserves (CRR/SLR). This increases the cost of liquidity mismanagement and reinforces the need for precise reserve planning. The hike also signals tighter monetary conditions, potentially influencing lending and deposit rates.

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 6.15% for all linked calculations.
Recompute penal interest rates on reserve shortfalls using the revised rates (9.15% or 11.15%).
Communicate the change to treasury and compliance teams to ensure accurate reserve maintenance.
Review liquidity buffers to avoid shortfalls and associated penalty costs.

Who it affects

All scheduled commercial banks, Treasury and ALM desks, Compliance and risk management teams

❓ Common questions

Regulatory timeline

Stated effective date effective September 30, 2022
Decoded by BankPulse 2026-06-18 05:31 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Status change: withdrawn 03 Aug 2026, 04:00 IST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 30, 2022?

The Bank Rate has been increased by 50 basis points from 5.65% to 6.15% with immediate effect.

How does this change impact penal interest rates on reserve shortfalls?

Penal rates linked to the Bank Rate have risen: the lower rate is now 9.15% (Bank Rate + 3%) and the higher rate is 11.15% (Bank Rate + 5%).

Which banks are affected by this circular?

This circular is applicable to all banks, as stated in the RBI 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 #216: DOR.RET.REC.70/12.01.001/2022-23 — "Change in Bank Rate" dated September 30, 2022”

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

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 942 kb ) Change in Bank Rate RBI/2022-23/123 DOR.RET.REC.70/12.01.001/2022-23 September 30, 2022 Madam/Sir, Change in Bank Rate Please refer to our circular DOR.RET.REC.59/12.01.001/2022-23 dated August 05, 2022 on the captioned subject. 2. As announced in the Monetary Policy Statement 2022-23 dated September 30, 2022 , the Bank Rate is revised upwards by 50 basis points from 5.65 per cent to 6.15 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 . Applicability 4. This circular is applicable to all the banks. 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 (8.65 per cent) or Bank Rate plus 5.0 percentage points (10.65 per cent). Bank Rate plus 3.0 percentage points (9.15 per cent) or Bank Rate plus 5.0 percentage points (11.15 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/2022-23/123 · issued 30 Sep 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=12394&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.