Reserve bank of India reduces bank rate by 50 basis points from 9.5% to 9%. This will cut the rate of interest in the market. RBI issued a note regarding cut in bank rate. Full note is as under.
As announced in the Press Release 2013-2014/728 dated October 07, 2013, the Bank Rate stands adjusted by 50 basis points from 9.5 per cent to 9.0 per cent with effect from October 07, 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.
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