Home › Circulars › RBI/2025-26/45

Penal Interest on CRR and SLR

Current · Source: Reserve Bank of India · RBI/2025-26/45 · issued 06 Jun 2025 · ~1 min read
Quick answerRBI reduces Bank Rate by 50 basis points, affecting penal interest rates on CRR and SLR shortfalls.
The rule, in the simplest words
How it plays out — a real example

A treasury officer in Indore, Priya, checks her bank's daily CRR report and sees they are short by ₹2 crore. Because the Bank Rate just dropped to 5.75%, the penal interest she must pay on that shortfall is now 8.75% (Bank Rate + 3%) instead of the old 9.25%, saving her bank some money on the fine.

What changed

The Bank Rate has been revised downwards by 50 basis points from 6.25% to 5.75%. Penal interest rates on shortfalls in CRR and SLR requirements linked to the Bank Rate have also been revised. The revised penal interest rates are Bank Rate plus 3.0 percentage points or Bank Rate plus 5.0 percentage points.

What it means for you

The Bank Rate has been reduced by 50 basis points to 5.75%, and penal interest rates on CRR and SLR shortfalls linked to the Bank Rate have been revised accordingly.

What you must do

Who it affects

All banks

❓ Common questions

What is the new Bank Rate?

The new Bank Rate is 5.75%.

How are penal interest rates affected?

Penal interest rates linked to the Bank Rate have been revised to Bank Rate plus 3.0 percentage points or Bank Rate plus 5.0 percentage points.

📜 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▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly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 ( 233 kb ) Penal Interest on shortfall in CRR and SLR requirements - Change in Bank Rate RBI/2025-26/45 DoR.RET.REC.22/12.01.001/2025-26 June 06, 2025 All banks, Madam / Sir, Penal Interest on shortfall in CRR and SLR requirements - Change in Bank Rate Please refer to Chapter VIII of Master Direction - Reserve Bank of India [Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)] Directions – 2021 as well as our circular DoR.RET.REC.16/12.01.001/2025-26 dated April 09, 2025 on the captioned subject. 2. As announced in the Monetary Policy Statement 2025-26 dated June 06, 2025 , the Bank Rate is revised downwards by 50 basis points from 6.25 per cent to 5.75 per cent with immediate effect. Accordingly, all penal interest rates on shortfall in CRR and SLR requirements, which are specifically linked to the Bank Rate, also stand revised as under: 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 shortfall). Bank Rate plus 3.0 percentage points (9.25 per cent) or Bank Rate plus 5.0 percentage points (11.25 per cent). Bank Rate plus 3.0 percentage points (8.75 per cent) or Bank Rate plus 5.0 percentage points (10.75 per cent). Yours faithfully, (Manoranjan Padhy) Chief General Manager 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 © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/45 · issued 06 Jun 2025. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All banks), your first concrete step on “Penal Interest on CRR and SLR” is: “Note the revised Bank Rate and penal interest rates as per RBI circular.” (RBI issued this 06 Jun 2025).

  1. Circular: RBI/2025-26/45 -- Penal Interest on CRR and SLR
  2. Issued: 06 Jun 2025
  3. Action required: Note the revised Bank Rate and penal interest rates as per RBI circular.
  4. Owner: ____________ Target date: ____________
  5. Board/committee approval needed? Y / N
  6. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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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=12857&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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