HomeCirculars › RBI/2006-2007/257

CRR Hiked for Scheduled State Co-operative Banks

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2006-2007/257 · issued 14 Feb 2007 · ~1 min read
Quick answerRBI raised CRR for Scheduled State Co-operative Banks by 0.50% in two stages: to 5.75% from Feb 17, 2007, and to 6.00% from Mar 3, 2007, on net demand and time liabilities.
The rule, in the simplest words
How it plays out — a real example

Ravi, the treasurer of a state co-operative bank, checks the circular and updates his CRR calculation. For the fortnight starting Feb 17, he ensures the bank's RBI account holds 5.75% of NDTL, then adjusts to 6.00% for the next fortnight, avoiding any penalty.

What changed

The Cash Reserve Ratio (CRR) for all Scheduled State Co-operative Banks was increased by half a percentage point. The hike is phased: first to 5.75% effective the fortnight starting February 17, 2007, then to 6.00% effective the fortnight starting March 3, 2007.

What it means for you

Banks must hold more funds as reserves with RBI, reducing lendable resources. This tightens liquidity and may pressure net interest margins. Co-operative banks need to adjust their asset-liability management to meet the higher reserve requirement.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All Scheduled State Co-operative Banks, Treasury departments of co-operative banks, Compliance teams handling reserve requirements

❓ 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 percentage from February 17, 2007?

The CRR is 5.75% of net demand and time liabilities (NDTL) for the fortnight starting February 17, 2007.

When does the CRR increase to 6.00%?

The CRR rises to 6.00% effective from the fortnight beginning March 3, 2007.

Does this apply to all co-operative banks?

Yes, this circular applies to all Scheduled State Co-operative Banks.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2514: RPCD.CO.RF.BC.49/07.02.01/2006-07 — "Section 42 (1) of Reserve Bank of India Act, 1934 - Maintenance of CRR" dated February 14, 2007”
📜 Read the original circular — full text as issued by RBI
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As set out in Press Release: 2006-07/1094 dated February 13, 2007, it has been decided to increase Cash Reserve Ratio (CRR) of all Scheduled State 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 (i.e., the fortnight beginning from) CRR on net demand and time liabilities (per cent) February 17, 2007 5.75 March 3, 2007 6.00 A copy the relative notification RPCD.RF.No. 7458 /07.02.01/2006-07 dated February 14, 2007 is enclosed. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, (K.Bhattacharya) 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/2006-2007/257 · issued 14 Feb 2007. The plain-English explanation above is BankPulse’s own independent summary.
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Topics: Co-operative Banks
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Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. KYC / AML · Gross NPA (GNPA) · Deposit insurance (DICGC) · Scheduled Commercial Bank (SCB)

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3282&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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