No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2022-23/148 · issued 07 Dec 2022 · ~1 min read
Quick answerRBI raised the Bank Rate by 35 basis points to 6.50% effective December 7, 2022, aligning with the monetary policy stance. This directly increases penal interest rates on reserve shortfalls for all banks.
What changed
The Bank Rate was revised upward from 6.15% to 6.50%, a 35 bps increase, effective immediately. Consequently, penal interest rates on reserve requirement shortfalls—linked to the Bank Rate—also rose: the lower tier moved from 9.15% to 9.50%, and the higher tier from 11.15% to 11.50%.
What it means for you
Banks will face higher costs for failing to meet reserve requirements, as penal rates are now pegged to the new Bank Rate. This reinforces RBI's tightening stance, potentially squeezing liquidity and encouraging stricter reserve management. Lenders should review their reserve compliance processes to avoid increased 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 6.50% for calculating penal interest on reserve shortfalls.
Communicate the revised penal rates (9.50% and 11.50%) to treasury and compliance teams immediately.
Reassess reserve maintenance strategies to minimize shortfalls and avoid higher penalty costs.
Monitor RBI circulars for any further rate adjustments or clarifications on applicability.
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 dateeffective December 7, 2022
Decoded by BankPulse2026-06-18 05:15 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 December 7, 2022?
The Bank Rate has been increased by 35 basis points from 6.15% to 6.50% with immediate effect.
How does this change affect penal interest rates on reserve shortfalls?
Penal rates linked to the Bank Rate are revised: the lower tier (Bank Rate plus 3%) moves to 9.50%, and the higher tier (Bank Rate plus 5%) moves to 11.50%.
Which banks are impacted 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 byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #200: DOR.RET.REC.88/12.01.001/2022-23 — "Change in Bank Rate" dated December 7, 2022”
📜 Read the original circular — full text as issued by RBI
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/148 · issued 07 Dec 2022. 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=12420&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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