Home › Circulars › RBI/2006-2007/270

CRR Exemption on Select Liabilities Withdrawn, New Norms Effective

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2006-2007/270 · issued 01 Mar 2007 · ~2 min read
Quick answerRBI withdrew its June 2006 circular exempting certain liabilities from CRR, but kept exemptions for inter-bank liabilities, ACU balances, CBLO transactions, and OBU deposits, subject to a 3% statutory minimum CRR on total demand and time liabilities.

What changed

RBI withdrew its earlier circular dated June 22, 2006 that had provided CRR exemptions on certain categories. However, the central bank clarified that scheduled commercial banks continue to be exempt from maintaining average CRR on four specific liability categories, provided they maintain the statutory minimum CRR of 3% on their total demand and time liabilities.

What it means for you

Banks must now comply with the updated CRR framework, which removes the previous blanket exemption but retains targeted relief for inter-bank liabilities, ACU dollar accounts, CBLO transactions with CCIL, and OBU deposits. This ensures liquidity management remains flexible for these specific instruments while reinforcing the 3% floor on overall CRR compliance.

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 Commercial Banks (excluding Regional Rural Banks), Treasury and compliance departments, Banks with Offshore Banking Units (OBUs), Banks using CBLO or ACU mechanisms

❓ Common questions

Regulatory timeline

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

What liabilities are still exempt from average CRR under this circular?

The exemptions apply to liabilities to the banking system in India, credit balances in ACU US dollar accounts, transactions in CBLO with CCIL, and demand and time liabilities of Offshore Banking Units, subject to maintaining the 3% statutory minimum CRR on total demand and time liabilities.

Does this circular change the CRR requirement for my bank?

It withdraws the earlier June 2006 circular but retains the same exemptions for the four categories. The key requirement is that your bank must continue to maintain at least 3% CRR on total demand and time liabilities.

When did this circular take effect?

The circular was issued on March 1, 2007, and the withdrawal of the earlier circular was effective immediately. The exemptions themselves are effective from June 22, 2006, as stated in the circular.

📜 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 #2504: DBOD.No.Ret.BC.64/12.01.001/2006-07 — "Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories" dated March 1, 2007”
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/270 Ref: DBOD.No. Ret.BC. 64/12.01.001/2006-07 March 01, 2007 All Scheduled Commercial Banks (excluding Regional Rural Banks) Dear Sir, Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories Please refer to our Circular RBI/2005-2006/423 DBOD.No.Ret.BC.93/12.01.001/2005-2006 dated June 22, 2006 on the captioned subject. It has been decided to withdraw the above circular with immediate effect. It has however, been decided that every Scheduled Commercial Bank shall continue to be exempted from maintaining average CRR with effect from June 22, 2006 on the following liabilities, subject to the maintenance of statutory minimum CRR of 3 per cent on its total demand and time liabilities: (i) Liabilities to the banking system in India as computed under Clause (d) of the Explanation to Section 42 (1) of the RBI Act, 1934; (ii) Credit balances in ACU (US$) Accounts; (iii) Transactions in Collateralized Borrowing and Lending Obligation (CBLO) with Clearing Corporation of India. (CCIL); and (iv) Demand and Time Liabilities in respect of their Offshore Banking Units (OBUs) 2. A copy of the relative notification DBOD. No. Ret. BC.63/12.01.001/2006-2007 dated March 01, 2007 is enclosed. Please acknowledge receipt. Yours faithfully (Malvika Sinha) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/270 · issued 01 Mar 2007. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamRisk ManagementSenior Management / BoardInternal AuditData Science / Analytics
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
Browse all departments →

💬 Banker Discussion

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.

Loading comments…
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=3292&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—