Home › Circulars › RBI/2006-2007/307

CRR hike for StCBs: 50 bps in two stages from April 2007

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2006-2007/307 · issued 04 Apr 2007 · ~2 min read

Quick answerRBI raised CRR for Scheduled State Co-operative Banks by 50 bps to 6.50% in two fortnights starting April 14, 2007. Interest on eligible CRR balances was halved to 0.50% per annum. Banks must maintain minimum 3% CRR as per RBI Act.

What changed

CRR for Scheduled State Co-operative Banks increased by 0.50 percentage points in two equal stages: to 6.25% effective fortnight beginning April 14, 2007, and to 6.50% effective fortnight beginning April 28, 2007. Interest paid on eligible CRR balances was reduced from 1.00% to 0.50% per annum from April 14, 2007.

What it means for you

StCBs will need to set aside more funds as reserves, reducing lendable resources and potentially compressing net interest margins. The lower interest on CRR balances further reduces income from idle reserves. Banks must adjust liquidity management and may need to revise deposit or lending rates to maintain profitability.

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 liquidity buffers to meet the higher CRR of 6.50% by April 28, 2007.
Update internal systems and reporting for the two-stage CRR increase and reduced interest rate.
Communicate the impact on net interest income to treasury and ALCO for strategic planning.
Ensure compliance with the statutory minimum CRR of 3% on total demand and time liabilities.

Who it affects

Scheduled State Co-operative Banks, Treasury departments of StCBs, ALCO teams at co-operative banks, RBI regional offices monitoring compliance

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 17:36 IST
Status change: superseded 10 Jul 2026, 04:05 IST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 StCBs after this circular?

The CRR increases to 6.25% from April 14, 2007, and further to 6.50% from April 28, 2007, on net demand and time liabilities.

How does the interest rate change on CRR balances affect StCBs?

Interest on eligible CRR balances is reduced from 1.00% to 0.50% per annum effective April 14, 2007, lowering income from reserves held with RBI.

Is there any minimum CRR requirement that remains unchanged?

Yes, the effective CRR maintained on total demand and time liabilities must not fall below 3.00% as per the RBI Act, 1934.

📜 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 ( 51 kb ) StCBs – Maintenance of CRR RBI/2006-2007/307 RPCD.CO.RF.BC.No. 64 /07.02.01/2006-07 April 4, 2007 All Scheduled State Co-operative Banks Dear Sir Section 42 (1) of RBI Act, 1934 – Maintenance of Cash Reserve Ratio (CRR) Please refer to our circular No. RPCD.CO.RF.BC 49/07.02.01/2006-07 dated February 14, 2007 read with circular No. RPCD.RF.BC.54/07.02.01/2006-07 dated March 2, 2007 on the captioned subject. As set out in Press Release: 2006-2007/1336 dated March 30, 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 the fortnights as indicated below: Effective date (i.e. the fortnight beginning from) CRR on net demand and time liabilities (per cent) April 14, 2007 6.25 April 28, 2007 6.50 However, the effective CRR maintained by Scheduled State Co-operative Banks on total demand and time liabilities shall not be less than 3.00 per cent, as stipulated under the Reserve Bank of India Act, 1934. 2. A copy of the relevant notification RPCD.CO.RF.BC 65 /07.02.01/ 2006-07 dated April 4, 2007 is enclosed. 3 . Interest on eligible cash balances for CRR At present, all Scheduled State Co-operative Banks are paid interest at the rate of 1.00 per cent on eligible cash balances maintained with Reserve Bank of India under proviso to Section 42 (1) and 42 (1A) of the Reserve Bank of India Act, 1934. It has now been decided that with effect from the fortnight beginning on April 14, 2007, the Scheduled State Co-operative Banks will be paid interest at the rate of 0.50 per cent per annum on eligible cash balances maintained with the Reserve Bank of India under current CRR requirement. 4. 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 &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/307 · issued 04 Apr 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=3393&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.