Home › Circulars › RBI/2008-09/108

RRB CRR Hiked to 9% from Aug 30, 2008

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2008-09/108 · issued 31 Jul 2008 · ~1 min read

Quick answerRBI raised CRR for Regional Rural Banks by 25 bps to 9% of net demand and time liabilities, effective fortnight starting August 30, 2008. This follows the First Quarter Review of Annual Monetary Policy 2008-09.

The rule, in the simplest words

RRBs must keep 9% of their total deposits (NDTL) as cash with RBI.
This is a 0.25% increase from the earlier rate.
The new rule starts from the two-week period that begins on August 30, 2008.
This follows the RBI Governor's monetary policy announcement on July 29, 2008.
RRBs must follow this or face penalties under the RBI Act.

How it plays out — a real example

Ravi, the treasury head of a Regional Rural Bank, checks the new circular and updates his CRR calculation sheet. He ensures that from August 30, his bank's daily cash balance with RBI is at least 9% of its deposits, adjusting short-term investments to free up the extra 0.25%.

What changed

The CRR for RRBs was increased by 25 basis points from the previous level to 9.00%. The change takes effect from the fortnight beginning August 30, 2008, as per the Governor's monetary policy statement on July 29, 2008.

What it means for you

RRBs must now hold a higher portion of their deposits as reserves with RBI, reducing lendable funds. This tightens liquidity for rural lending and may pressure net interest margins. Banks need to adjust their asset-liability management to comply.

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

Recalibrate your RRB's fortnightly CRR maintenance to 9% of NDTL from Aug 30, 2008.
Review liquidity buffers and adjust short-term funding plans to meet the higher reserve requirement.
Communicate the change to your treasury and compliance teams for timely implementation.
Monitor daily CRR compliance to avoid penalties under Section 42 of RBI Act.

Who it affects

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

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-07-30 04:03 IST
partially_modified_by — RRB CRR Cut by 50 bps to 8.50% from Oct 11, 2008
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 for RRBs?

The CRR is increased to 9.00% of net demand and time liabilities, effective from the fortnight starting August 30, 2008.

Why was the CRR increased?

The increase was part of the First Quarter Review of Annual Monetary Policy 2008-09, aimed at managing liquidity conditions.

When does this change take effect?

From the fortnight beginning August 30, 2008.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)

Partially modified by RRB CRR Cut by 50 bps to 8.50% from Oct 11, 2008

RBI’s words: “in partial modification of its notification RPCD.CO.RRB.No 1301/03.05.28 (B) /2008-2009 dated July 31, 2008”

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #2141: RPCD.CO.RRB.No.1301/03.05.28(B)/2008-09 — "Notification - Maintenance of Cash Reserve Ratio (CRR)-(RRBs)" dated July 31, 2008”

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

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No. BC.16 / 03.05.28(B)/2008-09 July 31, 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.84/03.05.28 (B)/2007-2008 (RBI/2007-08/385) dated June 26, 2008 on the captioned subject. As set out in the Governor's statement on the First Quarter Review of Annual Monetary Policy for the year 2008-09 issued on July 29, 2008, on a review of the current liquidity situation, it has been decided to increase Cash Reserve Ratio (CRR) for Regional Rural Banks by 25 basis points to 9.00 per cent of its net demand and time liabilities with effect from the fortnight beginning August 30, 2008. 2. A copy of the relative notification RPCD RRB.CO No.1301 / 03.05.28(B) / 2008 -09 dated July 30, 2008 is enclosed. 3. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, ( A.K.Pandey ) General Manager RPCD.CO.RRB.No.1301/ 03.05.28(B)/2008-09 July 31, 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 RPCD.CO.RRB.No 13710 /03.05.28 (B) /2007-2008 dated June 26, 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 9.00 per cent of its net demand and time liabilities from the fortnight beginning from August 30, 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/2008-09/108 · issued 31 Jul 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=4386&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.