Home › Circulars › RBI/2008-09/234

RRB CRR Cut: 250 bps Reduction to 6.50%

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/234 · issued 15 Oct 2008 · ~1 min read
Quick answerRBI slashed CRR for Regional Rural Banks by 250 bps to 6.50% of NDTL, effective October 11, 2008. This follows a 150 bps cut days earlier, freeing up liquidity for RRBs amid tightening conditions.

What changed

RBI reduced CRR for RRBs by an additional 100 bps from 7.50% to 6.50% of NDTL, effective the fortnight starting October 11, 2008. Combined with the prior 150 bps cut, the total reduction is 250 bps from the original 9.00%.

What it means for you

RRBs now need to hold less cash with RBI, releasing significant liquidity for lending or investment. This eases pressure on rural credit flow and helps RRBs manage tight money market conditions. Banks should reassess their liquidity buffers and lending capacity.

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 Regional Rural Banks (RRBs), RBI regional offices overseeing RRBs, Rural lending and deposit customers

❓ 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 effective date for the new CRR rate?

The reduced CRR of 6.50% applies from the reporting fortnight that began on October 11, 2008.

Does this circular supersede the earlier CRR notification?

Yes, the October 15, 2008 notification supersedes the earlier one dated October 10, 2008, which had set CRR at 7.50%.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #2070: RPCD.CO.RRB.No.4381/03.05.28(B)/2008-09 — "Notification on Maintenance of Cash Reserve Ratio (CRR) - (RRBs)" dated October 15, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/234 RPCD.CO.RRB. No. BC.46/ 03.05.28(B)/2008-09 October 15, 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.44/03.05.28 (B)/2008-2009 (RBI/2008-09/213) dated October 10, 2008 on the captioned subject, advising reduction in Cash Reserve Ratio (CRR) by 150 basis points from 9.00 percent to 7.50 per cent of net demand and time liabilities with effect from October 11, 2008. 2. On a review of the evolving liquidity situation, and as set out in the RBI Press Release 2008-2009/500 of date, it has been decided to further reduce the Cash Reserve Ratio (CRR) for Regional Rural Banks by 100 basis points from 7.50 per cent to 6.50 per cent of their net demand and time liabilities (NDTL) with effect from the current reporting fortnight that began on October 11, 2008. 3. A copy of the relative notification  RPCD RRB.CO No.4381/ 03.05.28(B)/ 2008 -09 dated October 15, 2008  is enclosed. 4. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, ( G.Srinivasan ) Chief General Manager-in-Charge RPCD.CO.RRB.No.4381/ 03.05.28(B)/2008-09 October 15, 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 4161 /03.05.28 (B) /2008-2009 dated October 10, 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 250 basis points to 6.50 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/2008-09/234 · issued 15 Oct 2008. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamSenior Management / BoardRisk ManagementBranch Manager — PSU / Co-op / RRB (sanctioning powers)Business Head / Vertical Head
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Financial Inclusion & Priority Sector
Small Account Rules for Co-operative Banks – RBI Circular 2011RRB CRR Hiked to 9% from Aug 30, 2008CRR Hiked for RRBs by 50 bps in Two StagesRRBs: PMLA Compliance – CTR, STR, and KYC Software MandateRRB CRR Hiked to 8.25% from May 24, 2008
Browse all departments →

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
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=4548&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—