The Reserve Bank of India reduced penal interest rates on shortfalls in the cash-reserve-ratio and statutory-liquidity-ratio requirements with immediate effect on Friday. 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, the central bank said. Thus, accordingly, all penal interest rates on shortfall in CRR and SLR requirements, which are specifically linked to the Bank Rate, also stand revised. For shortfalls in reserve requirements, the penal rate of the bank rate plus 3 percentage points has been reduced from 9.25% to 8.75%. The higher penal rate of bank rate plus 5 percentage points has been cut from 11.25% to 10.75%, according to a release by the central bank.

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