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CRR slashed by 150 bps to 7.50% from Oct 11, 2008

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/214 · issued 10 Oct 2008 · ~1 min read
Quick answerRBI cut CRR by 150 bps to 7.50% of NDTL, effective Oct 11, 2008, replacing an earlier 50 bps reduction. This was a response to tightening liquidity amid global financial turmoil, freeing up significant funds for banks.

What changed

RBI revised its earlier October 6, 2008 circular that had reduced CRR by 50 bps to 8.50%. The new notification increased the reduction to 150 bps, bringing CRR down to 7.50% of NDTL, effective from the fortnight starting October 11, 2008.

What it means for you

Banks will have to maintain lower reserves against deposits, releasing substantial liquidity into the system. This move aims to ease funding pressures and support lending during the global financial crisis. Lenders can expect improved cash flow and potentially lower interbank rates.

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

Who it affects

All Scheduled Commercial Banks (excluding Regional Rural Banks), Treasury departments, Lending and credit teams, Compliance and reporting units

❓ 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 and when does it take effect?

The CRR is reduced to 7.50% of NDTL, 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 larger cut was needed to ease tight conditions.

Does this circular replace the earlier one from October 6, 2008?

Yes, this notification supersedes the earlier circular that had announced a 50 bps reduction.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #2082: DBOD.No.Ret.BC.54/12.01.001/2008-2009 — "Notification on Maintenance of CRR" dated October 10, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/214 Ref: DBOD.No.Ret.BC.55/12.01.001/2008-09 October 10, 2008 All Scheduled Commercial Banks (excluding Regional Rural Banks) Dear Sir, Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of CRR Please refer to our  Circular DBOD. No. Ret. BC.52 /12.01.001/ 2008-09 dated October 6, 2008  on the captioned subject, advising reduction in Cash Reserve Ratio (CRR) by 50 basis points from 9.00 per cent to 8.50 per cent of net demand and time liabilities with effect from October 11, 2008. 2. 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 CRR for Scheduled Commercial 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. 3. A copy of the relative notification  DBOD. No. Ret. BC.54/12.01.001/2008-2009 dated October 10, 2008  is enclosed. 4. Please acknowledge receipt. Yours faithfully (Vinay Baijal) Chief General Manager DBOD.No.Ret.BC.54/12.01.001/2008-2009 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  DBOD.No.Ret.BC.51/12.01.001/2008-09 dated October 6, 2008 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Commercial 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/2008-09/214 · 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=4530&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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