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RRB 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No longer current — withdrawn, no replacement on file yet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/2007-2008/175 · issued 31 Oct 2007 · ~1 min read
Quick answerRBI raised CRR for all Regional Rural Banks by 50 basis points to 7.50% of demand and time liabilities, effective from the fortnight starting November 10, 2007, to manage liquidity.

What changed

RBI increased the Cash Reserve Ratio (CRR) for Regional Rural Banks by 50 basis points, from the previous level to 7.50% of their demand and time liabilities. This change takes effect from the fortnight beginning November 10, 2007, superseding the earlier CRR notification of August 1, 2007.

What it means for you

RRBs will need to park a higher proportion of their deposits with RBI, reducing lendable resources and tightening liquidity. This move is part of RBI's broader liquidity management and may pressure RRB net interest margins. Banks should reassess their cash flow and liquidity planning to comply with the new requirement.

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 Regional Rural Banks (RRBs), Treasury departments of RRBs, Compliance and operations teams at RRBs

❓ Common questions

Regulatory timeline

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 RRBs and when does it apply?

The new CRR rate is 7.50% of demand and time liabilities, effective from the fortnight beginning November 10, 2007.

Why did RBI increase the CRR for RRBs?

RBI cited a review of the current liquidity situation as the reason for the 50 bps increase, aiming to manage overall liquidity in the banking system.

Does this circular replace the earlier CRR circular for RRBs?

Yes, this circular partially modifies the earlier notification dated August 1, 2007, and sets the new CRR at 7.50%.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #2324: RPCD.CO.RRB.No.4555/03.05.28(B)/2007-08 — "NOTIFICATION on Maintenance of Cash Reserve Ratio (CRR)- Regional Rural Banks(RRBs)" dated October 31, 2007”
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/175 RPCD.CO.RRB. No. BC. 35 / 03.05.28(B)/2007-08 October 31, 2007 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.17/03.05.28(B) /2007-2008 (RBI/2007-08/109) dated August 1, 2007  on the captioned subject. On a review of the current liquidity situation, it has been decided to increase Cash Reserve Ratio (CRR) of all Regional Rural 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 relative notification  RPCD RRB.CO No.4555/ 03.05.28(B) / 2007 -08 dated October 31, 2007  is enclosed. 3. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, (Surekha Marandi) General Manager RPCD.CO.RRB.No. 4555 / 03.05.28(B)/2007-08 October 31, 2007 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 the notification RPCD.CO.RRB.No 16 /03.05.28(B) /2007-2008 dated August 01, 2007, the Reserve Bank of India hereby notifies that every Regional Rural Bank should maintain a Cash Reserve Ratio (CRR) of 7.50 per cent of its demand and time liabilities from the fortnight beginning November 10, 2007. (V.S.Das) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/175 · issued 31 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=3914&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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