No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2022-23/65 · issued 08 Jun 2022 · ~1 min read
Quick answerRBI raised the Bank Rate by 50 basis points to 5.15% effective June 8, 2022, following the Monetary Policy Statement. This directly increases penal interest rates on reserve shortfalls for banks.
What changed
The Bank Rate was revised upward by 50 basis points from 4.65% to 5.15% with immediate effect. Consequently, penal interest rates on reserve requirement shortfalls, which are linked to the Bank Rate, also increased: the lower penal rate moved from 7.65% to 8.15%, and the higher rate from 9.65% to 10.15%.
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 and may prompt banks to manage liquidity more carefully to avoid 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 5.15% for calculating penal interest on reserve shortfalls.
Communicate the revised penal rates (8.15% and 10.15%) to treasury and compliance teams immediately.
Review liquidity positions to minimize shortfalls and avoid higher penalty costs.
Align loan pricing and deposit rate strategies with the broader rate hike cycle signaled by this move.
Who it affects
All scheduled commercial banks, Treasury departments, Compliance and risk management teams, Banks with frequent reserve shortfalls
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/65 · issued 08 Jun 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=12333&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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