What is a Base Rate? and What is Bank Rate ?

What is a Base Rate? 
 
The Base Rate is the minimum interest rate of a Bank below which it cannot lend, except in cases allowed by RBI. Before the Base rate the interest rates were decided by BPLR system. The Base Rate system has replaced the BPLR system with effect from July 1, 2010 .
 
What is Bank Rate?
 
Bank rate is the rate on which RBI lends to the commercial banks to help the banks meet depositor’s demands and reserve requirements for long term. The Interest rate charges by the RBI from the banks is called bank rate.

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