RBI:
The Reserve Bank of India announcing a reduction in the Bank Rate by 25 basis points, bringing it down from 6.75% to 6.50%, effective immediately.
The Bank Rate is the rate at which the RBI lends money to commercial banks. A decrease in this rate typically leads to lower borrowing costs for banks, which can then pass on the benefits to consumers and businesses through reduced interest rates on loans.
The notification specifies that all penal interest rates on shortfalls in reserve requirements, which are linked to the Bank Rate, have been adjusted accordingly
[RBI Notification No. RBI/2024-25/111 DoR.RET.REC.57/12.01.001/2024-25 dated on 07.02.2025]
