January 29, 2013

All Scheduled Commercial Banks
& Local Area Banks

Dear Sir,

Bank Rate

As announced in the Third Quarter Review of Monetary Policy 2012-13, the Bank Rate stands adjusted by 25 basis points from 9.00 per cent to 8.75 per cent with effect from January 29, 2013.

2. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in Annex.

3. Please acknowledge receipt.

Yours faithfully

(Murli Radhakrishnan)
Chief General Manager

Encl: as above

Annex

Penal Interest Rates which are linked to the Bank Rate