Source: Reserve Bank of India · RBI/2008-09/213 · issued 10 Oct 2008 · ~1 min read
Quick answerRBI slashed CRR for Regional Rural Banks by 150 bps to 7.50% of NDTL, effective fortnight starting October 11, 2008, replacing the earlier 50 bps cut. This frees up significant liquidity for RRBs amid global financial stress.
What changed
Earlier on October 7, 2008, RBI had reduced CRR for RRBs by 50 bps from 9.00% to 8.50%. Now, after reviewing liquidity conditions, RBI deepened the cut to 150 bps, bringing CRR directly to 7.50% of NDTL, superseding the previous notification.
What it means for you
RRBs will have substantially more deployable funds as the reserve requirement drops sharply. This move aims to ease tight liquidity and support lending in rural and semi-urban areas. Banks can use the freed cash to boost credit flow or manage their own liquidity positions better.
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 your CRR maintenance for the fortnight beginning October 11, 2008 at 7.50% of NDTL.
Adjust your cash reserve holdings accordingly and release the excess liquidity into operations.
Acknowledge receipt of this circular to your respective RBI Regional Office.
Update internal systems and reporting to reflect the revised CRR rate immediately.
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 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 and when does it take effect?
The CRR for RRBs is reduced to 7.50% of net demand and time liabilities, effective from the fortnight beginning October 11, 2008.
Why did RBI increase the CRR cut from 50 bps to 150 bps?
RBI reviewed the evolving liquidity situation amid global and domestic developments and decided a deeper cut was needed to ease pressure, as stated in the accompanying press release.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “in supersession of the earlier notification RPCD.CO.RRB.No 4161 /03.05.28 (B) /2008-2009 dated October 10, 2008”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2085: RPCD.CO.RRB.No.BC.44/03.05.28(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/2008-09/213
RPCD.CO.RRB. No. BC.44/ 03.05.28(B)/2008-09
October 10, 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.40/03.05.28 (B)/2008-2009 (RBI/2008-09/205) dated October 7, 2008 on the captioned subject advising reduction in Cash Reserve Ratio (CRR) by 50 basis points from 9.00 percent to 8.50 per cent of net demand and time liabilities with effect from October 11, 2008.
On a review of the evolving liquidity situation in the context of global and domestic developments, and as set out in the RBI Press Release 2008-2009/467 of date, it has been decided to reduce the Cash Reserve Ratio (CRR) for Regional Rural Banks by 150 basis points from 9.00 per cent to 7.50 per cent of their net demand and time liabilities (NDTL) instead of the 50 basis points (from 9.00 per cent to 8.50 per cent ) reduction with effect from the fortnight beginning October 11, 2008.
2. A copy of the relative notification RPCD RRB.CO No.4161/ 03.05.28(B)/ 2008 -09 dated October 10, 2008 is enclosed.
3. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully,
(G.Srinivasan)
Chief General Manager-in-Charge
RPCD.CO.RRB.No.4161/ 03.05.28(B)/2008-09
October 10, 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 supersession of the earlier notification RPCD.CO.RRB.No 3968 /03.05.28 (B) /2008-2009 dated October 7, 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 150 basis points to 7.50 per cent of its net demand and time liabilities from the fortnight beginning from October 11, 2008.
(Anand Sinha)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/213 · issued 10 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=4529&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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