4) Bank Rate
It is the rate at which the RBI is ready to buy or rediscount bills of exchange or other commercial papers. This rate has been aligned to the MSF rate and, therefore, changes automatically as and when the MSF rate changes alongside policy repo rate changes.
Any upward revision in the bank rate is an indication that banks should also increase deposit rates as well as their respective base rate / Benchmark Prime Lending Rate.
Thus any revision in the bank rate indicates that it is likely that interest rates on your deposits will move according, so will the EMIs on floating rate loans.
Do note: The bank rate Remember is not the same thing as deposit rates offered by banks for fixed and recurring deposits.
Current Bank Rate: 8.25%