Home › Circulars › RBI/2007-2008/177

CRR Hiked to 7.50% for Urban Co-op Banks from Nov 10, 2007

Current · Source: Reserve Bank of India · RBI/2007-2008/177 · issued 01 Nov 2007 · ~1 min read
Quick answerRBI raised CRR for Scheduled Primary (Urban) Co-operative Banks by 50 bps to 7.50% of demand and time liabilities, effective fortnight from November 10, 2007, to tighten liquidity.
The rule, in the simplest words
How it plays out — a real example

A co-operative bank branch officer in Indore, Priya, checks her bank's new CRR requirement. She calculates that for every ₹100 deposited, the bank must now keep ₹7.50 with RBI instead of ₹7.00. This means she has less money to give out as gold loans, so she tells her team to be more careful about approving new loans until the bank adjusts its cash position.

What changed

The CRR for Scheduled Primary (Urban) Co-operative 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 July 31, 2007 circular.

What it means for you

Urban co-operative banks must set aside a larger portion of their deposits as reserves with RBI, reducing lendable resources. This move aims to absorb excess liquidity and curb inflationary pressures, impacting their net interest margins and liquidity management.

What you must do

Who it affects

All Scheduled Primary (Urban) Co-operative Banks, Treasury and ALM teams of urban co-operative banks, RBI's Department of Banking Supervision (urban co-op banks)

❓ Common questions

What is the new CRR rate for urban co-operative banks?

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

Which banks are covered by this circular?

All Scheduled Primary (Urban) Co-operative Banks are required to comply with this revised CRR.

When does this change take effect?

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

📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/177  Ref: UBD (PCB).No./ 3 /12.03.000/2007-08 November 01, 2007 The Chief Executive Officers of All Scheduled Primary (Urban) Co-operative 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/2007-08/110 UBD (PCB) Cir. No/9./12.03.000/2007-08 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 Primary (Urban) Co-operative 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 UBD (PCB) No./10/12.03.000/2007-08 dated November 01, 2007 is enclosed. 3.  Please acknowledge receipt. Yours faithfully, (Sathyan David) General Manager UBD(PCB) No./ 10 / 12.03.000/2007-08 November 01,  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 UBD.PCB.9/12.03.000/2007-08 dated July 31, 2007 , the Reserve Bank of India, hereby, notifies that every Scheduled Primary (Urban) Co-operative Bank should maintain a Cash Reserve Ratio (CRR) of 7.50 per cent of its demand and time liabilities from the fortnight beginning  from November 10, 2007. (V.S.Das) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/177 · issued 01 Nov 2007. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamRisk ManagementSenior Management / BoardInternal AuditIT & Cyber Security
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
Browse all departments →
Who does what — compliance checklist
💻 IT / Systems
  • Update internal systems and reporting processes to reflect the revised CRR rate.
📜 Compliance
  • Recalculate CRR requirement at 7.50% of demand and time liabilities for the fortnight starting November 10, 2007.
  • Ensure adequate statutory liquidity to meet the higher reserve requirement without default.
  • Review loan and investment portfolios to adjust for reduced deployable funds.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Scheduled Primary (Urban) Co-operative Banks, Treasury and ALM teams of urban co-operative banks, RBI's Department of Banking Supervision (urban co-op banks)), your first concrete step on “CRR Hiked to 7.50% for Urban Co-op Banks from Nov 10, 2007” is: “Recalculate CRR requirement at 7.50% of demand and time liabilities for the fortnight starting November 10, 2007.” (RBI issued this 01 Nov 2007).

  1. Circular: RBI/2007-2008/177 -- CRR Hiked to 7.50% for Urban Co-op Banks from Nov 10, 2007
  2. Issued: 01 Nov 2007
  3. Action required: Recalculate CRR requirement at 7.50% of demand and time liabilities for the fortnight starting November 10, 2007.
  4. Action required: Ensure adequate statutory liquidity to meet the higher reserve requirement without default.
  5. Action required: Review loan and investment portfolios to adjust for reduced deployable funds.
  6. Action required: Update internal systems and reporting processes to reflect the revised CRR rate.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
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=3915&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—