Home › Circulars › RBI/2007-08/385

RRB CRR Hiked to 8.75% in Two Stages from July 2008

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2007-08/385 · issued 26 Jun 2008 · ~1 min read

Quick answerRBI raised CRR for Regional Rural Banks by 50 bps to 8.75%, effective in two fortnights starting July 5, 2008 (8.50%) and July 19, 2008 (8.75%), citing global and domestic macroeconomic conditions.

The rule, in the simplest words

RBI raised the cash reserve ratio (CRR) for Regional Rural Banks (RRBs) by 0.50% (50 basis points).
The new CRR will be 8.50% starting July 5, 2008, and 8.75% starting July 19, 2008.
CRR is the portion of deposits (net demand and time liabilities) that banks must keep with RBI.
This change is based on current economic conditions, both in India and globally.
RRBs must follow this rule for every two-week period (fortnight) starting from the given dates.

How it plays out — a real example

Ravi, the treasurer of an RRB, checks the circular and updates his ALM system to set aside 8.50% of deposits from July 5 and 8.75% from July 19, ensuring the bank's cash balances at RBI are sufficient to avoid penalties.

What changed

RBI increased the CRR for RRBs by 50 basis points from the previous level. The new rate will be 8.50% from the fortnight beginning July 5, 2008, and 8.75% from the fortnight beginning July 19, 2008.

What it means for you

RRBs must set aside a larger portion of their net demand and time liabilities as reserves with RBI, reducing lendable funds. This tightens liquidity for rural lending and may pressure net interest margins. Banks need to adjust their asset-liability management to comply with the phased increase.

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 fortnights starting July 5 and July 19, 2008 using the new rates.
Ensure adequate cash balances with RBI to meet the 8.50% and then 8.75% requirement.
Review liquidity projections and adjust lending or investment plans to accommodate the higher reserve requirement.
Acknowledge receipt of this circular to your respective Regional Office.

Who it affects

All Regional Rural Banks (RRBs), Treasury and ALM teams of RRBs, RBI's Rural Planning and Credit Department

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-07-29 04:01 IST
partially_modified_by — RRB CRR Hiked 25 bps to 9% from Aug 30, 2008
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 for RRBs from July 2008?

The CRR is increased to 8.50% from the fortnight starting July 5, 2008, and further to 8.75% from the fortnight starting July 19, 2008.

Why did RBI increase the CRR for RRBs?

RBI cited a review of current global and domestic macroeconomic and financial developments as the reason for the increase.

Does this circular apply to all RRBs?

Yes, it applies to every Regional Rural Bank as per Section 42(1) of the RBI Act, 1934.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)

Partially modified by RRB CRR Hiked 25 bps to 9% from Aug 30, 2008

RBI’s words: “in partial modification of its notification RPCD.CO.RRB.No 13710 /03.05.28 (B) /2007-2008 dated June 26, 2008”

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #2215: RPCD.CO.RRB.No.13710/03.05.28(B)/2007-08 — "Notification on Maintenance of Cash Reserve Ratio (CRR) - Regional Rural Banks (RRBs)" dated June 26, 2008”

📜 Read the original circular — full text as issued by RBI

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No. BC.84 / 03.05.28(B)/2007-08 June 26, 2008 All Regional Rural Banks Dear Sir, Section 42 (1) of Reserve Bank of India Act, 1934 – Maintenance of Cash Reserve Ratio (CRR)- Regional Rural Banks(RRBs) Please refer to our circular RPCD.CO.RRB.BC.64/03.05.28 (B)/2007-2008 (RBI/2007-08/306) dated April 30, 2008 on the captioned subject. On review of current global and domestic macroeconomic and financial developments, it has been decided to increase cash reserve ratio (CRR) of Regional Rural Banks (RRBs) by 50 basis points to 8.75 per cent of their net demand and time liabilities 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) July 5, 2008 8.50 July 19, 2008 8.75 2. A copy of the relative notification RPCD RRB.CO No.13710 / 03.05.28(B) / 2007 -08 dated June 26, 2008 is enclosed. 3. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, (A.K.Pandey) General Manager RPCD.CO.RRB.No.13710/ 03.05.28(B)/2007-08 June 26, 2008 NOTIFICATION In exercise of the powers conferred under sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 and in partial modification of its notification RPCD.CO.RRB.No 11559 /03.05.28 (B) /2007-2008 dated April 30, 2008 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Regional Rural Bank (RRB) of its net demand and time liabilities shall, from effective dates mentioned below, be at the percentage points as indicated there against. Effective date (i.e., the fortnight beginning from) CRR on net demand and time liabilities (per cent) July 5, 2008 8.50 July 19, 2008 8.75 (V.S.Das) Executive Director 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/2007-08/385 · issued 26 Jun 2008. 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=4257&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.