Home › Circulars › RBI/2006-2007/260

RRB CRR Hiked by 50 bps in Two Stages

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2006-2007/260 · issued 14 Feb 2007 · ~1 min read

Quick answerRBI raised CRR for all Regional Rural Banks by 0.50% to 6.00%, effective in two stages from fortnights beginning February 17 and March 3, 2007. This tightens liquidity for RRBs.

The rule, in the simplest words

RBI raised the cash reserve ratio [CRR: portion of deposits banks must keep with RBI] for all Regional Rural Banks [RRBs: rural-focused banks] by 0.50%.
The hike happens in two steps: first to 5.75% from February 17, 2007, then to 6.00% from March 3, 2007.
CRR is calculated on net demand and time liabilities [NDTL: total deposits minus interbank borrowings].
This means RRBs must set aside more money with RBI, leaving less for loans.
The change is based on Section 42(1) of the RBI Act, 1934.

How it plays out — a real example

Ravi, the treasurer of an RRB, checks the circular and updates his daily reserve calculation. He ensures that from February 17, his bank holds 5.75% of its NDTL as CRR, and prepares for the 6.00% requirement in March.

What changed

CRR on net demand and time liabilities (NDTL) for RRBs increased by 0.50 percentage points. The first stage to 5.75% from February 17, 2007, and the second to 6.00% from March 3, 2007.

What it means for you

RRBs must hold more funds as reserves with RBI, reducing lendable resources. This could compress net interest margins and slow credit growth for rural lenders. Banks need to adjust liquidity planning immediately.

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 maintenance for the fortnight starting February 17, 2007, at 5.75%.
Prepare for the second stage hike to 6.00% from March 3, 2007.
Review NDTL projections to ensure adequate cash reserve balances.
Communicate the change to treasury and operations teams for compliance.

Who it affects

All Regional Rural Banks (RRBs), Treasury departments of RRBs, Compliance officers at RRBs

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-07-28 04:08 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 05 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 rate for RRBs from February 17, 2007?

5.75% of net demand and time liabilities (NDTL).

When does the CRR reach 6.00%?

From the fortnight beginning March 3, 2007.

Does this apply to all RRBs?

Yes, all Regional Rural Banks are covered.

📜 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 #2515: RPCD.CO.RRB.BC.50/03.05.28(B/2006-07 — "Section 42 (1) of Reserve Bank of India Act, 1934 - Maintenance of CRR - Regional Rural Banks (RRBs)" dated February 1”

📜 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 ( 474 kb ) RRBs – CRR Increased RBI/2006-2007/260 RPCD.CO.RRB.BC 50/03.05.28(B)/2006-07 February 14, 2007 All Regional Rural Banks Dear Sir, Section 42 (1) of Reserve Bank of India Act, 1934 – Maintenance of CRR-Regional Rural Banks (RRBs) Please refer to our circular RPCD.CO.RF.BC.38/07.02.01/2006-2007 (RBI/2006-07/202) dated December 11, 2006 on the above subject. 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 Regional Rural 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 RRB.CO No7523 / 03.05.28(B)/2006-07 dated February 14, 2007 is enclosed. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, (Surekha Marandi) 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/2006-2007/260 · issued 14 Feb 2007. The plain-English explanation above is BankPulse’s own independent summary.

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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=3283&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.