Home › Circulars › RBI/2007-2008/306

RRB CRR Hiked to 8.25% from May 24, 2008

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2007-2008/306 · issued 30 Apr 2008 · ~1 min read

Quick answerRBI raised CRR for Regional Rural Banks from 8.00% to 8.25% of net demand and time liabilities, effective fortnight starting May 24, 2008, to tighten liquidity as per the Annual Policy 2008-09.

The rule, in the simplest words

RRBs must keep 8.25% of their total deposits (net demand and time liabilities) as cash with RBI.
This new rule starts from the two-week period that begins on May 24, 2008.
The old rule was 8.00%, so RRBs now need to set aside a little more cash.
This change is part of RBI's plan to control how much money is available in the banking system.
RRBs have to follow this rule under Section 42(1) of the RBI Act, 1934.

How it plays out — a real example

Ravi, the treasurer of a Regional Rural Bank in Uttar Pradesh, checks the new RBI circular. He calculates that for every ₹100 crore of deposits, his bank must now hold ₹8.25 crore as CRR instead of ₹8 crore. He immediately updates the daily reserve maintenance plan to avoid penalties.

What changed

The CRR for RRBs was increased by 25 basis points from 8.00% to 8.25%. This change applies from the fortnight beginning May 24, 2008, superseding the previous notification of April 21, 2008.

What it means for you

RRBs must set aside a higher portion of their deposits as reserves with RBI, reducing lendable funds. This tightens liquidity in the rural banking system, potentially slowing credit growth and compressing margins for RRBs.

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 the fortnight starting May 24, 2008, using 8.25% of net demand and time liabilities.
Adjust liquidity management to ensure sufficient cash reserves are maintained daily.
Communicate the revised CRR requirement to treasury and operations teams immediately.
Review loan disbursement plans to align with reduced surplus funds.

Who it affects

All Regional Rural Banks (RRBs), Treasury departments of RRBs, RBI regional offices overseeing 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).

When does the new CRR rate take effect?

From the fortnight beginning May 24, 2008.

What was the previous CRR for RRBs?

8.00% of net demand and time liabilities, as per the April 21, 2008 notification.

Why was the CRR increased?

As part of the Governor's Annual Policy 2008-09, to manage evolving liquidity conditions.

📜 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 #2252: RPCD.CO.RRB.No.11559/03.05.28(B)/2007-08 — "Notification on Maintenance of CRR" dated April 30, 2008”

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

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No. BC.64 / 03.05.28(B)/2007-08 April 30, 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.BC.61/03.05.28 (B) /2007-2008 (RBI/2007-08/292) dated April 22, 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 Regional Rural 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. 2. A copy of the relative notification RPCD RRB.CO No.11559 / 03.05.28(B) / 2007 -08 dated April 30, 2008 is enclosed. 3. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, ( A.K.Pandey ) General Manager RPCD.CO.RRB.No.11559 / 03.05.28(B)/2007-08 April 30, 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 60 /03.05.28 (B) /2007-2008 dated April 21, 2008 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Regional Rural Bank shall be 8.25 per cent of its net demand and time liabilities from the fortnight beginning May 24, 2008 ( 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/2007-2008/306 · issued 30 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=4155&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.