Home › Circulars › RBI/2006-07/258

CRR Hiked by 50 bps for Urban Co-op Banks in Two Stages

Current · Source: Reserve Bank of India · RBI/2006-07/258 · issued 14 Feb 2007 · ~1 min read
Quick answerRBI raised CRR for scheduled urban co-operative banks by 0.50% of NDTL, effective from fortnights starting Feb 17 and Mar 3, 2007, reaching 6.00%. This tightens liquidity to manage macroeconomic conditions.
The rule, in the simplest words
How it plays out — a real example

Ravi, the treasurer of a scheduled urban co-op bank, checks the circular and updates his CRR maintenance schedule. He calculates the additional reserve needed from Feb 17 and alerts the lending team to slow disbursements temporarily to manage liquidity.

What changed

The CRR for scheduled primary urban co-operative banks was increased by 0.50 percentage points in two equal steps. The first hike to 5.75% applies from the fortnight beginning February 17, 2007, and the second to 6.00% from March 3, 2007.

What it means for you

Banks must set aside more funds as reserves with RBI, reducing lendable resources. This will compress net interest margins and may slow credit growth. Urban co-operative banks need to adjust liquidity planning and monitor deposit costs.

What you must do

Who it affects

Scheduled primary (urban) co-operative banks, Treasury and ALCO teams of affected banks, Borrowers of urban co-operative banks (indirectly via tighter credit)

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the new CRR rate for urban co-operative banks?

It increases to 5.75% from the fortnight starting Feb 17, 2007, and further to 6.00% from Mar 3, 2007.

Why was the CRR increased?

RBI cited a review of current macroeconomic and monetary conditions as the reason for the hike.

Does this apply to all urban co-operative banks?

It applies to scheduled primary (urban) co-operative banks only.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 49 kb ) UCBs – CRR Increased RBI/2006-07/258 UBD(PCB) No 2/ 12.03.000/2006-07 February 14, 2007 The chief Executive Officers of All scheduled Primary (urban)Co-operative Banks Dear Sir/Madam, Section 42(1) of Reserve Bank of India Act, 1934- maintenance of CRR Please refer to our circular UBD(PCB)No22/16.26.000/2006-07 dated December 11, 2006 on the captioned subject. On review of the current macroeconomic and monetary conditions, it has been decided to increase the Cash Reserve Ratio (CRR) of scheduled primary (urban) Co-operative banks by one half of one percentage point of their net Demand and Time Liabilities (NDTL) in two stages, effective from fortnights as indicated below. Effective date (ie the fortnight beginning from) CRR on net demand and time liabilities (percent) February 17, 2007 5.75 March 03, 2007 6.00 A copy of the relative notification UBD(PCB)No 2/12.03.000/2006-07 dated February 14, 2007 is enclosed. Please acknowledge receipt. Yours faithfully, (K.P.V.Karunakaran) General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-07/258 · issued 14 Feb 2007. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💰 Credit
  • Review loan sanction pipeline and liquidity buffers to absorb the incremental reserve drag.
📜 Compliance
  • Recalculate CRR maintenance for fortnights starting Feb 17 and Mar 3, 2007, using updated rates.
  • Ensure adequate cash balances with RBI to meet the higher reserve requirement.
  • Communicate the CRR impact to treasury and ALCO teams for funding strategy adjustments.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Scheduled primary (urban) co-operative banks, Treasury and ALCO teams of affected banks, Borrowers of urban co-operative banks (indirectly via tighter credit)), your first concrete step on “CRR Hiked by 50 bps for Urban Co-op Banks in Two Stages” is: “Recalculate CRR maintenance for fortnights starting Feb 17 and Mar 3, 2007, using updated rates.” (RBI issued this 14 Feb 2007).

  1. Circular: RBI/2006-07/258 -- CRR Hiked by 50 bps for Urban Co-op Banks in Two Stages
  2. Issued: 14 Feb 2007
  3. Action required: Recalculate CRR maintenance for fortnights starting Feb 17 and Mar 3, 2007, using updated rates.
  4. Action required: Ensure adequate cash balances with RBI to meet the higher reserve requirement.
  5. Action required: Review loan sanction pipeline and liquidity buffers to absorb the incremental reserve drag.
  6. Action required: Communicate the CRR impact to treasury and ALCO teams for funding strategy adjustments.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3281&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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