Reserve bank of India has increased bank rate by 350 basis points. RBI has fixed new bank rate 9.5% which was 6% earlier. RBI has issued a circular no 63 dated 15-03-2012 about this issue. Full circular is as under.
All Regional Rural Banks / State and Central Co-operative Banks
Chief General Manager
(Effective close of business on February 13, 2012)
Penal interest rates on shortfalls in reserve requirements
(depending on duration of shortfalls).
Bank Rate plus 3.0 percentage points (9.00 per cent) or Bank Rate plus 5.0 percentage points
(11.00 per cent).
Bank Rate plus 3.0 percentage points (12.50 per cent) or Bank Rate plus 5.0 percentage points (14.50 per cent).