CRR Hiked by 50 bps in Two Stages from Feb 17, 2007
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2006-2007/259 · issued 14 Feb 2007 · ~1 min read
Quick answerRBI raised CRR by 50 bps to 6% in two stages: 5.75% from Feb 17, 2007, and 6% from Mar 3, 2007. This tightens liquidity and increases the portion of NDTL banks must hold as reserves.
The rule, in the simplest words
Banks must keep more money with RBI: 5.75% of their total deposits and borrowings (NDTL) from Feb 17, and 6% from Mar 3.
The increase is done in two steps, each of 0.25 percentage points, so banks can adjust slowly.
This rule is for all scheduled commercial banks except Regional Rural Banks.
The higher reserve means banks have less money to give out as loans, which can slow down lending.
How it plays out — a real example
Ravi, a treasury manager at a large private bank, updates his daily cash flow forecast to ensure the bank holds an extra 0.25% of NDTL from Feb 17. He alerts the credit team that loan disbursements may need tighter scrutiny due to reduced liquidity.
What changed
CRR was increased by 0.5 percentage points of NDTL, split into two equal steps. The first step to 5.75% applies from the fortnight beginning Feb 17, 2007; the second to 6% from Mar 3, 2007.
What it means for you
Banks must set aside more funds with RBI, reducing lendable resources and squeezing liquidity. This will pressure net interest margins and may slow credit growth as banks adjust to higher reserve requirements.
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
Recalibrate daily liquidity management to meet the higher CRR from Feb 17 and Mar 3.
Review NDTL projections to ensure accurate reserve maintenance for both fortnights.
Communicate the impact on treasury operations and loan pricing to senior management.
Update internal systems and reporting templates for the new CRR rates.
Who it affects
All scheduled commercial banks (excluding RRBs), Treasury and ALM teams, Credit and lending departments
❓ 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).
When does the first CRR increase take effect?
The first increase to 5.75% applies from the fortnight starting February 17, 2007.
What is the final CRR rate after both stages?
The final CRR rate is 6%, effective from the fortnight beginning March 3, 2007.
Does this apply to Regional Rural Banks?
No, the circular explicitly excludes Regional Rural 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 #2513: DBOD.No.Ret.BC.58/12.01.001/2006-07 — "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/2006-2007/259 · 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=3279&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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