RBI Raises Bank Rate to 5.75%, Revises CRR and SLR Penal Interest Rates

Summary: The Reserve Bank of India has revised the Bank Rate upward by 25 basis points from 5.50 per cent to 5.75 per cent with immediate effect, as announced in the Monetary Policy Statement, 2026-27 dated October 07, 2026. Consequently, penal interest rates on shortfalls in Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements that are linked to the Bank Rate have also been revised. Depending on the duration of the shortfall, the applicable penal interest rates have increased from Bank Rate plus 3.0 percentage points (8.50 per cent) or Bank Rate plus 5.0 percentage points (10.50 per cent) to Bank Rate plus 3.0 percentage points (8.75 per cent) or Bank Rate plus 5.0 percentage points (10.75 per cent), respectively. The revised rates take effect immediately. The circular refers to the RBI’s earlier circular dated December 05, 2025 on the same subject. :contentReference[oaicite:0]{index=0}

Reserve Bank of India

RBI/2026-27/283
DoR.RET.REC.239/12.01.001/2026-27 | Dated: October 07, 2026

All banks,

Madam / Sir,

Penal Interest on shortfall in CRR and SLR requirements – Change in Bank Rate

Please refer to our circular DoR.RET.REC.341/12.01.001/2025-26 dated December 05, 2025 on the captioned subject.

As announced in the Monetary Policy Statement, 2026-27 dated October 07, 2026, the Bank Rate is revised upwards by 25 basis points from 5.50 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

Yours faithfully,

(Manoranjan Padhy)

Chief General Manager