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Why we configure bandwidth value to a interface ? Is it possible to utilize this value to rate limit ?
As already noted by Mark, setting the bandwidth statement informs other protocols of the amount of logical bandwidth, and whatever it's set to doesn't normally impact the available physical bandwidth. For example, routing protocols might use the bandwidth setting for metric calculation. Interfaces will often use it for link loading percentage computations.
I think I recall some of the later IOSs support percentage based policing. If they do, they might use the bandwidth setting.
If I adjust the bandwidth for a one gig ethernet interface from 1000 to 10, what is the real transit capacity for this interface now?
Again, if you're changing the bandwidth statement, and there are not QoS statements using it, the only difference you might see is on the interface's bandwidth loading stats. I.e. for the same actual bandwidth usage, it should show a percentage 100 times larger.
