{"id":4995,"date":"2021-08-03T10:12:20","date_gmt":"2021-08-03T04:42:20","guid":{"rendered":"https:\/\/www.goseeko.com\/blog\/?p=4995"},"modified":"2021-10-30T07:39:54","modified_gmt":"2021-10-30T07:39:54","slug":"what-is-the-bank-rate","status":"publish","type":"post","link":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/","title":{"rendered":"What is the bank rate?"},"content":{"rendered":"\n<p>The bank rate is the rate at which the central bank of a country lends money to commercial banks. In other words, it is the rate at which commercial banks discounts and rediscounts commercial bills with the RBI. It is one of the monetary policies of the Reserve bank of India. It  is also known as\u00a0 the\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Interest_rate\">rate of interest<\/a>\u00a0which a\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Central_bank\">R<\/a>BI\u00a0charges on its loans and advances to a\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Commercial_bank\">commercial bank<\/a>s. <\/p>\n\n\n\n<p>Under this policy, commercial banks borrow money from the RBI without any collateral security. The Reserve Bank of India determines the bank annually depending on the circulation of money in the economy. The changes in such rate also affect money supply in the economy. It is because of changes in borrowing capacity of commercial banks due to changes in such rate. <\/p>\n\n\n\n<p>When the RBI wants to inject more money in the economy, it reduces the bank rate. Such reduction leads to reduction in prime lending rates of commercial banks. In other words, it encourages the commercial banks to borrow more at a cheap rate. Hence, the banks are also able to lend money to the retail borrowers at a low interest rate. Similarly, when the RBI wants to restrict money supply in the economy, it increases the bank rate. Such increase leads to increase in prime lending rates of commercial banks.<\/p>\n\n\n\n<p>On the other hand, it discourages the commercial banks for borrowing from the Reserve Bank of India. Hence, the commercial banks have left less money for retail lending.\u00a0 Thus the commercial banks increase their prime lending rates. In India, the RBI determines the rate for the same annually depending on the money supply and monetary policy.\u00a0<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>The rate of last two years is shown in the table below-<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Year<\/strong><\/td><td><strong>Bank rate (%)<\/strong><\/td><\/tr><tr><td><strong>2021<\/strong><\/td><td><strong>4.25&nbsp;<\/strong><\/td><\/tr><tr><td><strong>2020<\/strong><\/td><td><strong>4.65<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Bank rate is the rate at which the central bank of a country lends money to commercial banks.<\/p>\n","protected":false},"author":28,"featured_media":4997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-4995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commerce"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Goseeko blog What is the bank rate?  Goseeko blog<\/title>\n<meta name=\"description\" content=\"Bank rate is the rate at which the central bank of a country lends money to commercial banks. It is a monetary policy tool of RBI.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Goseeko blog What is the bank rate?  Goseeko blog\" \/>\n<meta property=\"og:description\" content=\"Bank rate is the rate at which the central bank of a country lends money to commercial banks. It is a monetary policy tool of RBI.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/\" \/>\n<meta property=\"og:site_name\" content=\"Goseeko blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goseeko\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-03T04:42:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-30T07:39:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"225\" \/>\n\t<meta property=\"og:image:height\" content=\"225\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gunjan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@goseeko\" \/>\n<meta name=\"twitter:site\" content=\"@goseeko\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gunjan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/\"},\"author\":{\"name\":\"Gunjan\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/#\/schema\/person\/843a7ac71fc4ae8c177dbb7820f2dc9c\"},\"headline\":\"What is the bank rate?\",\"datePublished\":\"2021-08-03T04:42:20+00:00\",\"dateModified\":\"2021-10-30T07:39:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/\"},\"wordCount\":301,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg?fit=225%2C225&ssl=1\",\"articleSection\":[\"Commerce\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/\",\"url\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/\",\"name\":\"Goseeko blog What is the bank rate? Goseeko blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg?fit=225%2C225&ssl=1\",\"datePublished\":\"2021-08-03T04:42:20+00:00\",\"dateModified\":\"2021-10-30T07:39:54+00:00\",\"description\":\"Bank rate is the rate at which the central bank of a country lends money to commercial banks. It is a monetary policy tool of RBI.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg?fit=225%2C225&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg?fit=225%2C225&ssl=1\",\"width\":225,\"height\":225},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.goseeko.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What is the bank rate?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/#website\",\"url\":\"https:\/\/www.goseeko.com\/blog\/\",\"name\":\"Goseeko blog\",\"description\":\"Learning beyond college, Students platform for life skills.\",\"publisher\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.goseeko.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/#organization\",\"name\":\"Goseeko.com\",\"url\":\"https:\/\/www.goseeko.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/i1.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/09\/GoSeeko_Stacked-logo-01.png?fit=2471%2C2471&ssl=1\",\"contentUrl\":\"https:\/\/i1.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/09\/GoSeeko_Stacked-logo-01.png?fit=2471%2C2471&ssl=1\",\"width\":2471,\"height\":2471,\"caption\":\"Goseeko.com\"},\"image\":{\"@id\":\"https:\/\/www.goseeko.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/goseeko\",\"https:\/\/x.com\/goseeko\",\"https:\/\/www.instagram.com\/goseeko\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/#\/schema\/person\/843a7ac71fc4ae8c177dbb7820f2dc9c\",\"name\":\"Gunjan\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.goseeko.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/603118e8b67d49e1d7409d0214533c962209d94d08d298ce69d8e191ed573faa?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/603118e8b67d49e1d7409d0214533c962209d94d08d298ce69d8e191ed573faa?s=96&d=mm&r=g\",\"caption\":\"Gunjan\"},\"url\":\"https:\/\/www.goseeko.com\/blog\/author\/gunjangoseeko\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Goseeko blog What is the bank rate?  Goseeko blog","description":"Bank rate is the rate at which the central bank of a country lends money to commercial banks. It is a monetary policy tool of RBI.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/","og_locale":"en_US","og_type":"article","og_title":"Goseeko blog What is the bank rate?  Goseeko blog","og_description":"Bank rate is the rate at which the central bank of a country lends money to commercial banks. It is a monetary policy tool of RBI.","og_url":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/","og_site_name":"Goseeko blog","article_publisher":"https:\/\/www.facebook.com\/goseeko","article_published_time":"2021-08-03T04:42:20+00:00","article_modified_time":"2021-10-30T07:39:54+00:00","og_image":[{"width":225,"height":225,"url":"https:\/\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg","type":"image\/jpeg"}],"author":"Gunjan","twitter_card":"summary_large_image","twitter_creator":"@goseeko","twitter_site":"@goseeko","twitter_misc":{"Written by":"Gunjan","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#article","isPartOf":{"@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/"},"author":{"name":"Gunjan","@id":"https:\/\/www.goseeko.com\/blog\/#\/schema\/person\/843a7ac71fc4ae8c177dbb7820f2dc9c"},"headline":"What is the bank rate?","datePublished":"2021-08-03T04:42:20+00:00","dateModified":"2021-10-30T07:39:54+00:00","mainEntityOfPage":{"@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/"},"wordCount":301,"commentCount":0,"publisher":{"@id":"https:\/\/www.goseeko.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg?fit=225%2C225&ssl=1","articleSection":["Commerce"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/","url":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/","name":"Goseeko blog What is the bank rate? Goseeko blog","isPartOf":{"@id":"https:\/\/www.goseeko.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#primaryimage"},"image":{"@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg?fit=225%2C225&ssl=1","datePublished":"2021-08-03T04:42:20+00:00","dateModified":"2021-10-30T07:39:54+00:00","description":"Bank rate is the rate at which the central bank of a country lends money to commercial banks. It is a monetary policy tool of RBI.","breadcrumb":{"@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#primaryimage","url":"https:\/\/i0.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg?fit=225%2C225&ssl=1","contentUrl":"https:\/\/i0.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg?fit=225%2C225&ssl=1","width":225,"height":225},{"@type":"BreadcrumbList","@id":"https:\/\/www.goseeko.com\/blog\/what-is-the-bank-rate\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.goseeko.com\/blog\/"},{"@type":"ListItem","position":2,"name":"What is the bank rate?"}]},{"@type":"WebSite","@id":"https:\/\/www.goseeko.com\/blog\/#website","url":"https:\/\/www.goseeko.com\/blog\/","name":"Goseeko blog","description":"Learning beyond college, Students platform for life skills.","publisher":{"@id":"https:\/\/www.goseeko.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.goseeko.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.goseeko.com\/blog\/#organization","name":"Goseeko.com","url":"https:\/\/www.goseeko.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.goseeko.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/i1.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/09\/GoSeeko_Stacked-logo-01.png?fit=2471%2C2471&ssl=1","contentUrl":"https:\/\/i1.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/09\/GoSeeko_Stacked-logo-01.png?fit=2471%2C2471&ssl=1","width":2471,"height":2471,"caption":"Goseeko.com"},"image":{"@id":"https:\/\/www.goseeko.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/goseeko","https:\/\/x.com\/goseeko","https:\/\/www.instagram.com\/goseeko\/"]},{"@type":"Person","@id":"https:\/\/www.goseeko.com\/blog\/#\/schema\/person\/843a7ac71fc4ae8c177dbb7820f2dc9c","name":"Gunjan","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.goseeko.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/603118e8b67d49e1d7409d0214533c962209d94d08d298ce69d8e191ed573faa?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/603118e8b67d49e1d7409d0214533c962209d94d08d298ce69d8e191ed573faa?s=96&d=mm&r=g","caption":"Gunjan"},"url":"https:\/\/www.goseeko.com\/blog\/author\/gunjangoseeko\/"}]}},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.goseeko.com\/blog\/wp-content\/uploads\/2021\/07\/bank-rate-1.jpg?fit=225%2C225&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/posts\/4995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/comments?post=4995"}],"version-history":[{"count":1,"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/posts\/4995\/revisions"}],"predecessor-version":[{"id":5913,"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/posts\/4995\/revisions\/5913"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/media\/4997"}],"wp:attachment":[{"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/media?parent=4995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/categories?post=4995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.goseeko.com\/blog\/wp-json\/wp\/v2\/tags?post=4995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}