RBI Hikes Bank Rate to 5.75 Per Cent, Revises Penal Interest Rates on CRR and SLR Shortfalls

Exam-focused facts from the 7 October 2026 current affairs briefing.

Key facts

The Reserve Bank of India (RBI) revised the Bank Rate upwards 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.
Penal interest rates on shortfalls in CRR and SLR reserve requirements, which are linked to the Bank Rate, stand revised to 8.75 per cent (Bank Rate plus 3.0 percentage points) or 10.75 per cent (Bank Rate plus 5.0 percentage points) depending on the duration of the shortfall.
The circular RBI/2026-27/283 (DoR.RET.REC.239/12.01.001/2026-27) dated October 07, 2026 refers to an earlier RBI circular dated December 05, 2025 on the same subject.