Source: Reserve Bank of India · RBI/2008-09/205 · issued 07 Oct 2008 · ~1 min read
Quick answerRBI reduced CRR for Regional Rural Banks by 50 bps from 9.00% to 8.50% of NDTL, effective fortnight starting October 11, 2008. This ad hoc, temporary measure aims to ease liquidity amid global and domestic stress.
What changed
The CRR for RRBs was lowered by 50 basis points, from 9.00% to 8.50% of net demand and time liabilities, effective from the fortnight beginning October 11, 2008. This was a temporary, ad hoc move prompted by a review of liquidity conditions following global and domestic developments.
What it means for you
RRBs will have to maintain lower statutory reserves, freeing up funds for lending or investment. This provides immediate liquidity relief to these banks, helping them manage tighter conditions. The temporary nature signals RBI's readiness to adjust based on evolving liquidity.
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 October 11, 2008 using the new 8.50% rate on NDTL.
Monitor RBI press releases and circulars for further changes, as this measure is ad hoc and subject to review.
Ensure acknowledgment of this circular is sent to the respective RBI Regional Office.
Update internal systems and reporting templates to reflect the revised CRR requirement.
Who it affects
All Regional Rural Banks (RRBs), RBI's Rural Planning and Credit Department (RPCD)
RBI’s words: “in supersession of the earlier notification RPCD.CO.RRB.No 3968 /03.05.28 (B) /2008-2009 dated October 7, 2008”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2091: RPCD.CO.RRB.No.BC.40/03.05.28(B)/2008-09 — "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
RBI/2008-09/205
RPCD.CO.RRB. No. BC.40/ 03.05.28(B)/2008-09
October 7, 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.16/03.05.28 (B)/2008-2009 (RBI/2008-09/108) dated July 31, 2008 on the captioned subject. On a review of the current liquidity situation in the context of global and domestic developments, and as set out in the RBI Press Release 2008-2009/447 of dated October 6, 2008, it has been decided to reduce the Cash Reserve Ratio (CRR) for Regional Rural Banks by 50 basis points from 9.00 per cent to 8.50 per cent of their net demand and time liabilities (NDTL) with effect from the fortnight beginning October 11, 2008. This measure is ad hoc, temporary in nature and will be reviewed on a continuous basis in the light of the evolving liquidity conditions.
2. A copy of the relative notification RPCD RRB.CO No.3968/ 03.05.28(B) / 2008 -09 dated October 7, 2008 is enclosed.
3. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully,
(A.K.Pandey)
General Manager
RPCD.CO.RRB.No.3968/ 03.05.28(B)/2008-09
October 7, 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 1301/03.05.28 (B) /2008-2009 dated July 31, 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 reduced by 50 basis points to 8.50 per cent of its net demand and time liabilities from the fortnight beginning from October 11, 2008.
(V.S.Das)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/205 · issued 07 Oct 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=4519&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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