Home › Circulars › RBI/2007-2008/386

CRR Hiked to 8.75% for Urban Co-op Banks in Two Stages (July 5 and July 19, 2008)

Current · Source: Reserve Bank of India · RBI/2007-2008/386 · issued 26 Jun 2008 · ~1 min read
Quick answerRBI raised CRR for Scheduled Primary (Urban) Co-operative Banks by 50 bps to 8.75%, effective in two stages from July 5 and July 19, 2008, to manage macroeconomic conditions.
The rule, in the simplest words
How it plays out — a real example

Ravi, the treasurer of a scheduled urban co-op bank, updates his liquidity forecast: for the fortnight starting July 5, he must hold 8.50% of deposits as CRR, and from July 19, 8.75%. He adjusts short-term investments to ensure enough cash is set aside.

What changed

The CRR for Scheduled Primary (Urban) Co-operative Banks was increased to 8.50% effective July 5, 2008, and further to 8.75% effective July 19, 2008, as per the June 26, 2008 notification. The previous rate is not specified in this source.

What it means for you

Urban co-operative banks must set aside a larger portion of their net demand and time liabilities as reserves with RBI, reducing lendable funds. This tightens liquidity and may pressure net interest margins, as banks earn no interest on CRR balances.

What you must do

Who it affects

Scheduled Primary (Urban) Co-operative Banks, Treasury departments of these banks, Compliance officers at these banks

❓ 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 urban co-op banks?

The CRR is 8.50% from July 5, 2008, and 8.75% from July 19, 2008, on net demand and time liabilities.

Why was the CRR increased?

RBI cited current global and domestic macroeconomic and financial developments as the reason for the hike.

Does this apply to all urban co-op banks?

Yes, it applies to all Scheduled Primary (Urban) Co-operative Banks.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Partially modified by CRR Hiked 25 bps to 9% for Urban Co-op Banks from Aug 30, 2008
RBI’s words: “in partial modification of its notification UBD(PCB)No.13/12.03.000/2007-08 dated June 26, 2008”
📜 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 ( 14 kb ) Scheduled UCBs – Maintenance of CRR RBI/2007-2008/386 Ref: UBD (PCB).No./6 /12.03.000/2007-08 June 26, 2008 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 2007-2008/307 UBD (PCB) Cir. No.5/ 12.03.000/ 2007-08 dated April 30, 2008 on the captioned subject . On review of current global and domestic macroeconomic and financial developments,ithas been decided to increase Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative Banks by 50 basis points to 8.75 per cent of their Net Demand and Time Liabilities in two stages, effective from the fortnights as indicated below: Effective Date ( i.e. , the fortnight beginning from) CRR on net demand and time liabilities (per cent) July 05, 2008 8.50 July 19, 2008 8.75 2. A copy of the relevant notification UBD (PCB) No./13/12.03.000/2007-08 dated June 26, 2008 is enclosed. 3. Please acknowledge receipt. Yours faithfully, (A.K.Khound) Chief General Manager in-Charge UBD(PCB)No/ 13 /12.03.000/2007-08 June 26, 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 UBD(PCB)No.12/12.03.000/2007-08 dated April 30, 2008 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Primary (Urban) Co-operative Bank shall, from effective dates mentioned below, be at the percentage points as indicated there against. Effective Date ( i.e. , the fortnight beginning from) CRR on net demand and time liabilities (per cent) July 05, 2008 8.50 July 19, 2008 8.75 (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/2007-2008/386 · issued 26 Jun 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update internal systems and reporting processes to reflect the new CRR rates.
📜 Compliance
  • Recalculate CRR requirement at 8.50% for the fortnight starting July 5, 2008, and at 8.75% from July 19, 2008.
  • Ensure adequate liquidity to meet the higher reserve requirement on each effective date.
  • Communicate the change to treasury and compliance teams for smooth implementation.
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 (Scheduled Primary (Urban) Co-operative Banks, Treasury departments of these banks, Compliance officers at these banks), your first concrete step on “CRR Hiked to 8.75% for Urban Co-op Banks in Two Stages (July 5 and July 19, 2008)” is: “Recalculate CRR requirement at 8.50% for the fortnight starting July 5, 2008, and at 8.75% from July 19, 2008.” (RBI issued this 26 Jun 2008).

  1. Circular: RBI/2007-2008/386 -- CRR Hiked to 8.75% for Urban Co-op Banks in Two Stages (July 5 and July 19, 2008)
  2. Issued: 26 Jun 2008
  3. Action required: Recalculate CRR requirement at 8.50% for the fortnight starting July 5, 2008, and at 8.75% from July 19, 2008.
  4. Action required: Ensure adequate liquidity to meet the higher reserve requirement on each effective date.
  5. Action required: Update internal systems and reporting processes to reflect the new CRR rates.
  6. Action required: Communicate the change to treasury and compliance teams for smooth implementation.
  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.

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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=4259&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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