Home › Circulars › RBI/2007-2008/292

CRR Hiked for RRBs by 50 bps in Two Stages

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2007-2008/292 · issued 22 Apr 2008 · ~1 min read

Quick answerRBI raised CRR for all Regional Rural Banks by 0.50% to 8.00% on NDTL, effective from fortnights starting April 26 and May 10, 2008, to manage liquidity.

The rule, in the simplest words

RBI raised the cash reserve ratio (CRR) for all Regional Rural Banks (RRBs) by 0.50% in total.
The increase happens in two steps: first to 7.75% from April 26, 2008, then to 8.00% from May 10, 2008.
CRR is the portion of deposits (net demand and time liabilities) that banks must keep with RBI.
This move is to control liquidity in the banking system.
RRBs must follow the new rates for each fortnight starting on the given dates.

How it plays out — a real example

Ravi, the treasury head at a Regional Rural Bank, updates his cash flow plan for the fortnight starting April 26. He sets aside 7.75% of the bank's NDTL as CRR, then prepares for the 8.00% requirement from May 10, ensuring no shortfall.

What changed

RBI increased the CRR for RRBs by 0.50 percentage points in two equal steps. The first hike to 7.75% applies from April 26, 2008, and the second to 8.00% from May 10, 2008.

What it means for you

RRBs must set aside more funds as reserves with RBI, reducing lendable resources. This tightens liquidity and may pressure net interest margins. Banks need to adjust cash flow planning to meet higher reserve requirements.

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 fortnights starting April 26 and May 10, 2008.
Ensure NDTL reporting is accurate to avoid shortfall penalties.
Review liquidity buffers to accommodate the 0.50% incremental reserve.
Update internal systems and treasury operations for the new CRR rates.

Who it affects

All Regional Rural Banks (RRBs), Treasury departments of RRBs, Compliance officers at RRBs

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-07-30 04:03 IST
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 for RRBs from April 26, 2008?

The CRR on net demand and time liabilities (NDTL) is 7.75% from the fortnight beginning April 26, 2008.

When does the CRR reach 8.00%?

From the fortnight starting May 10, 2008, the CRR increases to 8.00% on NDTL.

Does this circular apply to all RRBs?

Yes, it applies to all Regional Rural Banks as per Section 42(1) of the RBI Act, 1934.

📜 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 #2261: RPCD.CO.RRB.No.BC.61/03.05.28(B)/2007-08 — "Section 42 (1) of Reserve Bank of India Act, 1934 - Maintenance of Cash Reserve Ratio (CRR) - Regional Rural Banks”

📜 Read the original circular — full text as issued by RBI

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No. BC. 61/03.05.28(B)/2007-08 April 22, 2008 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.No.BC.35/03.05.28(B) /2007-2008 (RBI/2007-08/175) dated October 31, 2007 on the captioned subject. On review of the current liquidity situation, it has been decided to increase Cash Reserve Ratio (CRR) of all Regional Rural Banks by one-half of one percentage point of their net Demand and Time Liabilities (NDTL) in two stages, effective from fortnights as indicated below: Effective date (i.e., the fortnight beginning from) CRR on net demand and time liabilities (per cent) April 26, 2008 7.75 May 10, 2008 8.00 2. A copy of the relative notification RPCD. CO. RRB. No.60 / 03.05.28(B) / 2007-08 dated April 21, 2008 is enclosed. 3. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, (A.K. Pandey) General Manager RPCD.CO.RRB. No. 60 / 03.05.28(B)/2007-08 April 21, 2008 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 4555 /03.05.28(B) /2007-2008 dated October 31, 2007 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Regional Rural Bank shall, from effective dates mentioned below, be at the percentage points as indicated thereagainst: Effective date (i.e., the fortnight beginning from) CRR on net demand and time liabilities (per cent) April 26, 2008 7.75 May 10, 2008 8.00 (V.S.Das) 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/2007-2008/292 · issued 22 Apr 2008. 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=4139&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.