Bank Rate

Bank Rate

October 16, 2018
6.75%
   0.25% on Aug 01, 2018
1 Yr ago 5 Yr ago 10 Yr ago
6.25% 9.00% 6.00%

Major Monetary Policy Rates And Reserve Requirements

Index
Rate    
Effective Date
6.50%
Aug 01, 2018
6.25%
Aug 01, 2018
6.75%
Aug 01, 2018
4.00%
Feb 09, 2013
19.50%
Oct 14, 2017
(Source: RBI)

Chart of Bank Rate

Select Range:
Source: Reserve Bank of India

Current Bank Rate

The current Bank Rate is 6.75%

. The Bank Rate last witnessed a change in its level on August 01, 2018 when it rose by 0.25% from its previous level of 6.50%.

As of today, i.e. on October 16, 2018, the Policy Rates which include Repo Rate stood at 6.50%, Reverse Repo Rate at 6.25%, Marginal Standing Facility (MSF) Rate at 6.75% and Bank Rate at 6.75%. The Reserve Ratios which include Cash Reserve Ratio (CRR) stood at 4.00% and the Statutory Liquidity Ratio (SLR) at 19.50%, according to data of Major Monetary Policy Rates and Reserve Requirements released by the Reserve Bank of India.


Bank Rate Comparision Chart

Bank Rate Vs
Bank Rate Comparision Chart
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Source: Reserve Bank of India

Bank Rate in India

Section 49 of Reserve Bank of India Act, 1934 defines Bank Rate as the standard rate at which RBI is prepared to buy or re-discount bills of exchange or other commercial paper eligible for purchase under the Act. In simple terms, Bank Rate is a discount rate at which the commercial banks and the financial institutions borrows loan from the central bank.

Bank rate was used as a Monetary Policy Key Rate through which RBI controlled the liquidity and inflation and which directly affected the Commercial Banks Lending Rates. But with the introduction of Liquidity Adjustment Facility (LAF), Bank rate is now not used by RBI for the monetary management.

Bank Rate is now aligned with Marginal Standing Facility (MSF) and hence the movement of MSF rates results in change in the Bank Rate. Nowadays, Bank Rate is more a benchmark rate which is only used in calculating penalty on default in the maintenance of cash reserve ratio (CRR) and the statutory liquidity ratio (SLR).


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Bank Rate
Historical Rate

Select Date

Bank Rate

%

DATE RATE   CHANGE
Aug 01, 2018 6.75% 0.25%
Jun 06, 2018 6.50% 0.25%
Aug 02, 2017 6.25% 0.25%
Apr 06, 2017 6.50% 0.25%
Oct 04, 2016 6.75% 0.25%
Apr 05, 2016 7.00% 0.75%
Sep 29, 2015 7.75% 0.50%
Jun 02, 2015 8.25% 0.25%
Mar 04, 2015 8.50% 0.25%
Jan 15, 2015 8.75% 0.25%
Jan 28, 2014 9.00% 0.25%
Oct 29, 2013 8.75% 0.25%
Oct 07, 2013 9.00% 0.50%
Sep 20, 2013 9.50% 0.75%
Jul 15, 2013 10.25% 2.00%
May 03, 2013 8.25% 0.25%
Mar 19, 2013 8.50% 0.25%
Jan 29, 2013 8.75% 0.25%
Apr 17, 2012 9.00% 0.50%
Feb 13, 2012 9.50% 3.50%
Apr 29, 2003 6.00% 0.25%
Oct 29, 2002 6.25% 0.25%
Oct 23, 2001 6.50% 0.50%
Mar 02, 2001 7.00% 0.50%
Feb 17, 2001 7.50% 0.50%
Jul 22, 2000 8.00% 1.00%
Apr 02, 2000 7.00% 1.00%
Mar 02, 1999 8.00% 1.00%
Apr 29, 1998 9.00% 1.00%

Tax on Petrol

Did you know?

You pay Rs. 35.42 as Tax when you buy one litre of Petrol i.e. Tax on Petrol is 76.0%.

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