Home › Circulars › RBI/2007-2008/287

CRR hiked to 8.25% from May 24, 2008

Current · Source: Reserve Bank of India · RBI/2007-2008/287 · issued 21 Apr 2008 · ~1 min read
Quick answerRBI raised CRR by 25 bps to 8.25% of NDTL, effective fortnight starting May 24, 2008. This tightens liquidity for all scheduled commercial banks except RRBs.
The rule, in the simplest words
How it plays out — a real example

Ravi, the treasurer of a large private bank, updates his ALCO dashboard to reflect the 8.25% CRR from May 24. He calculates the additional Rs 25 crore needed in reserves and adjusts the bank's short-term borrowing plan to avoid a liquidity shortfall.

What changed

The CRR for scheduled commercial banks was increased from 8.00% to 8.25% of net demand and time liabilities. The change takes effect from the fortnight beginning May 24, 2008.

What it means for you

Banks must set aside an additional 0.25% of their NDTL as reserves with RBI, reducing lendable funds. This will tighten liquidity and may pressure net interest margins. Lenders need to recalibrate deposit and credit strategies to manage the higher reserve requirement.

What you must do

Who it affects

All scheduled commercial banks (excluding RRBs), Treasury and ALCO teams, Compliance and risk management departments

❓ Common questions

When does the new CRR rate apply?

From the fortnight beginning May 24, 2008.

What is the new CRR percentage?

8.25% of net demand and time liabilities.

Are RRBs affected?

No, the circular excludes Regional Rural Banks.

📜 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 ( 51 kb ) SCBs - CRR Increased RBI/2007-2008/ 304 Ref: DBOD.No.Ret.BC.79 /12.01.001/2007-08 April 29, 2008 All Scheduled Commercial Banks (excluding Regional Rural Banks) Dear Sir, Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of CRR Please refer to our Circular RBI/2007-2008/287 DBOD .No. Ret. BC.70 /12.01.001/ 2007-08 dated April 21, 2008 on the captioned subject. As set out in the Governor's Annual Policy statement for the year 2008-09 issued on April 29, 2008, on a review of evolving liquidity situation, it has been decided to increase Cash Reserve Ratio (CRR) for Scheduled Commercial Banks from 8.00 per cent to 8.25 per cent of their net demand and time liabilities with effect from the fortnight beginning May 24, 2008. A copy of the relative notification DBOD. No. Ret. BC. 78 /12.01.001/2007-2008 dated April 29, 2008 is enclosed. Please acknowledge receipt. Yours faithfully (Vinay Baijal) Chief General Manager DBOD.No.Ret.BC. 78 /12.01.001/2007-2008 April 29, 2008 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 its notification DBOD.No.Ret.BC.69/12.01.001/2007-08 dated April 21, 2008 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Commercial Bank shall be 8.25 per cent of its net demand and time liabilities from the fortnight beginning from May 24, 2008. (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/2007-2008/287 · issued 21 Apr 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Adjust liquidity buffers and treasury operations to meet the higher reserve requirement.
📜 Compliance
  • Recalculate CRR maintenance for the fortnight starting May 24, 2008 at 8.25% of NDTL.
  • Communicate the change to your ALCO and treasury teams for compliance.
  • Review loan and deposit pricing to offset the impact on profitability.
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 commercial banks (excluding RRBs), Treasury and ALCO teams, Compliance and risk management departments), your first concrete step on “CRR hiked to 8.25% from May 24, 2008” is: “Recalculate CRR maintenance for the fortnight starting May 24, 2008 at 8.25% of NDTL.” (RBI issued this 21 Apr 2008).

  1. Circular: RBI/2007-2008/287 -- CRR hiked to 8.25% from May 24, 2008
  2. Issued: 21 Apr 2008
  3. Action required: Recalculate CRR maintenance for the fortnight starting May 24, 2008 at 8.25% of NDTL.
  4. Action required: Adjust liquidity buffers and treasury operations to meet the higher reserve requirement.
  5. Action required: Communicate the change to your ALCO and treasury teams for compliance.
  6. Action required: Review loan and deposit pricing to offset the impact on profitability.
  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

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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=4153&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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