Dear Rajesh,

bank rate is the interest rate at which the Central Bank also known as the Reserve Bank of India (RBI) takes an amount of charges for lending funds to the commercial banks. Hence stating that bank rate is essentially the official rate at which the RBI offers loans and advances to the banks as well as other financial institutions.

The effect of hanged in bank rate are :-

this causes a ripple effect since it directly impacts almost every sphere of the country's economy.