BP. CIR. 11 /16.11.00/2002-03

April 29, 2003

All Primary (Urban) Co-operative Banks

Dear Sir,

Change in Bank Rate

In terms of our circular letter No. BR.PCB. CIR.25/16.11.00/2002-2003 dated October 29, 2002, the Bank Rate was reduced from 6.50 percent per annum to 6.25 percent per annum. A reference is invited to para 71 of the Monetary and Credit Policy for the year 2003-2004 announced on 29 April, 2003 in terms of which the Bank Rate has been reduced by 0.25 percentage point from 6.25 per cent per annum to 6.00 per cent per annum with effect from close of business on April 29, 2003.

Accordingly, interest rates on advances from Reserve Bank of India for export credit refinance, refinance for SSI and penal interest rates on shortfalls in reserve requirements stand revised as detailed below:

	Existing Rates	Revised Rates
Interest Rates on advances from RBI 1. (a) For export credit refinance facility (b) For refinance for SSI under Section 17(2)(bb) read with Section 17(4)(c) of RBI Act, 1934 2. Penal Interest Rates on shortfalls in reserve requirements depending on duration of shortfalls.	Bank Rate (6.25) Bank Rate (6.25) Bank Rate i.e.6.25% plus 3 percentage points (9.25) or Bank Rate plus 5 percentage points (11.25)	Bank Rate (6.00) Bank Rate (6.00) Bank Rate i.e. 6.00% plus 3 percentage points (9.00) or Bank Rate plus 5 percentage points (11.00)

Please acknowledge receipt to our concerned Regional office .

Yours faithfully

(S. Karuppasamy)
Chief General Manager-in Charge