The correct answer is B. Under the regulatory penalty framework for CRR maintenance, a Day 1 default attracts a penal interest rate of Bank Rate + 3%. However, any subsequent, consecutive day of continued default attracts a higher escalated penalty of Bank Rate + 5%. Since Day 3 represents a subsequent day of continued default, the applicable rate is the current Bank Rate (6.50%) plus 5%, which equals 11.50%. The absolute shortfall amounts (₹100 Cr, ₹150 Cr, ₹200 Cr) dictate the principal on which the penalty is calculated, but the rate itself is determined strictly by the consecutive day count.