No longer current — withdrawn, no replacement on file yet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
RBI raised the cash reserve ratio (CRR) [money banks must keep with RBI] by half a percent for state co-operative banks.
The increase happens in two steps: first to 5.75% from Feb 17, 2007, then to 6.00% from Mar 3, 2007.
This means banks have to set aside more money as reserves, so they have less to lend.
Banks must follow the new rates for the fortnights starting on those dates.
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
Recalculate CRR requirement based on updated NDTL for the fortnights starting Feb 17 and Mar 3.
Ensure sufficient balances in the current account with RBI to meet the new CRR percentages.
Communicate the change to treasury and operations teams for liquidity planning.
Monitor fortnightly NDTL to avoid shortfall penalties.
Who it affects
All Scheduled State Co-operative Banks, Treasury departments of co-operative banks, Compliance teams handling reserve requirements
❓ Common questions
Regulatory timeline
Stated effective dateeffective February 17, 2007
Decoded by BankPulse2026-07-28 04:08 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 Aug 2026, 04:00 IST
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 byRBI/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
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.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=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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