Home › Circulars › RBI/2007-2008/107

CRR Hiked by 50 bps to 7.00% from Aug 4, 2007

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2007-2008/107 · issued 31 Jul 2007 · ~1 min read

Quick answerRBI raised CRR by 50 basis points to 7.00% for scheduled commercial banks, effective fortnight starting August 4, 2007. This tightens liquidity and increases the portion of deposits banks must hold as reserves.

The rule, in the simplest words

Banks must keep 7.00% of all demand and time liabilities (like savings and fixed deposits) as cash with RBI.
This rule starts from the two-week period beginning August 4, 2007.
The increase is 50 basis points (0.50%) from the earlier rate.
Regional Rural Banks are not required to follow this change.
The rule is based on Section 42(1) of the RBI Act, 1934.

How it plays out — a real example

Ravi, the treasury head at a large private bank, updates his system to set aside 7% of the bank's total deposits as CRR from August 4. He checks that the new reserve amount is correctly calculated and informs the operations team to adjust daily liquidity management.

What changed

RBI increased the cash reserve ratio (CRR) by 50 basis points from the previous level to 7.00%. The change applies to all scheduled commercial banks except regional rural banks, effective from the fortnight beginning August 4, 2007.

What it means for you

Banks must now set aside a larger share of their demand and time liabilities as reserves with RBI, reducing lendable funds. This move aims to absorb excess liquidity and curb inflationary pressures. Lenders may face tighter margins and may need to adjust lending rates or deposit mobilization strategies.

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 August 4, 2007, using 7.00% of total demand and time liabilities.
Ensure compliance with the new CRR requirement and applicable exemptions as per earlier notifications.
Review liquidity position and adjust asset-liability management to accommodate higher reserve holdings.
Communicate the change to treasury and operations teams for timely implementation.

Who it affects

All scheduled commercial banks (excluding Regional Rural Banks), Treasury departments, Compliance and risk management teams

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-07-29 04:01 IST
partially_modified_by — CRR Hiked by 50 bps to 7.50% from Nov 10, 2007
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 and when does it take effect?

The new CRR rate is 7.00%, effective from the fortnight beginning August 4, 2007.

Which banks are covered by this notification?

All scheduled commercial banks except Regional Rural Banks must comply with this CRR hike.

Are there any exemptions to this CRR requirement?

Yes, exemptions as specified in the earlier notification DBOD.No.Ret.BC.85/12.01.001/2006-07 dated April 20, 2007 continue to apply.

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

Partially modified by CRR Hiked by 50 bps to 7.50% from Nov 10, 2007

RBI’s words: “in partial modification of the notification DBOD.No.Ret.BC.24/12.01.001/2007-08 dated July 31, 2007”

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

RBI’s words: “Official withdrawal register entry #2362: DBOD.No.Ret.BC.24/12.01.001/2007-08 — "NOTIFICATION on Maintenance of Cash Reserve Ratio (CRR)" dated July 31, 2007”

📜 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 ( 566 kb ) Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of Cash Reserve Ratio (CRR) RBI/2007-2008/107 Ref: DBOD.No. Ret.BC.25/12.01.001/2007-08 July 31, 2007 To All Scheduled Commercial Banks (excluding Regional Rural Banks) Dear Sir, Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of Cash Reserve Ratio (CRR) Please refer to our Circular RBI/2006-2007/331 DBOD.No.Ret.BC.82/12.01.001/2006-07 dated April 20, 2007 on the captioned subject. On a review of the current liquidity situation, it has been decided to increase cash reserve ratio (CRR) of Scheduled Commercial Banks by 50 basis points to 7.00 per cent with effect from the fortnight beginning August 4, 2007. 2. A copy of the relevant notification DBOD. No. Ret. BC.24/12.01.001/2007-2008 dated July 31, 2007 is enclosed. Please acknowledge receipt. Yours faithfully (Malvika Sinha) General Manager DBOD. No.Ret.BC.24 /12.01.001/2007-08 July 31, 2007 NOTIFICATION In exercise of the powers conferred under the sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 and in partial modification of the notification DBOD.No.Ret.BC.83/12.01.001/2006-07 dated April 20, 2007, the Reserve Bank of India hereby notifies that every Scheduled Commercial Bank should maintain a Cash Reserve Ratio of 7.00 per cent of its total demand and time liabilities, subject to the exemptions as envisaged in the notification DBOD.No.Ret.BC.85/12.01.001/2006-07 dated April 20,2007, from the fortnight beginning August 04, 2007. (Anand Sinha) 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/2007-2008/107 · issued 31 Jul 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=3749&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.