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

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2007-2008/173 · issued 30 Oct 2007 · ~1 min read
Quick answerRBI raised CRR by 50 bps to 7.50% of demand and time liabilities, effective fortnight starting November 10, 2007. This move tightens liquidity and increases the reserve requirement for scheduled commercial banks, impacting their lendable resources.

What changed

The cash reserve ratio for scheduled commercial banks was increased by 50 basis points from the previous level to 7.50%. This change takes effect from the fortnight beginning November 10, 2007, superseding the earlier notification of July 31, 2007.

What it means for you

Banks will need to set aside a larger portion of their deposits as reserves with RBI, reducing funds available for lending and investments. This tightening is aimed at absorbing excess liquidity and managing inflationary pressures, potentially leading to higher lending rates and slower credit growth.

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 RRBs), Treasury and asset-liability management teams, Credit and lending departments

❓ Common questions

Regulatory timeline

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

When does the new CRR of 7.50% become effective?

The revised CRR applies from the fortnight starting November 10, 2007.

Which banks are covered by this circular?

All scheduled commercial banks, excluding Regional Rural Banks, must comply.

What is the basis for calculating the CRR?

The CRR is calculated as a percentage of a bank's demand and time liabilities.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #2326: DBOD.No.Ret.BC.44/12.01.001/2007-08 — "Section 42(1) of Reserve Bank of India Act, 1934 - Maintenance of Cash Reserve Ratio (CRR)" dated October 30, 2007”
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/173 DBOD.No. Ret.BC.44/12.01.001/2007-08 October 30, 2007 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/2007-2008/107/DBOD.No.Ret.BC.25/12.01.001/2007-08 dated July 31, 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 7.50 per cent of their demand and time liabilities with effect from the fortnight beginning November 10, 2007. 2. A copy of the relevant notification  DBOD. No. Ret. BC. 45/12.01.001/2007-2008 dated October 30, 2007  is enclosed. Please acknowledge receipt. Yours faithfully, (Malvika Sinha) General Manager DBOD. No.Ret.BC.45/12.01.001/2007-08 October 30, 2007 NOTIFICATION In exercise of the powers conferred under the amended 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.24/12.01.001/2007-08 dated July 31, 2007, the Reserve Bank of India hereby notifies that every Scheduled Commercial Bank should maintain a Cash Reserve Ratio of 7.50 per cent of its demand and time liabilities from the fortnight beginning from November 10, 2007. (Anand Sinha) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/173 · issued 30 Oct 2007. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3911&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.
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