Home › Circulars › RBI/2008-09/254

CRR Cut by 100 bps to 5.50% in Two Stages

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2008-09/254 · issued 03 Nov 2008 · ~1 min read

Quick answerRBI reduced CRR by 100 basis points from 6.50% to 5.50% of NDTL, effective in two stages: 6.00% from October 25, 2008, and 5.50% from November 8, 2008, to ease liquidity amid global financial stress.

What changed

The Cash Reserve Ratio (CRR) for scheduled commercial banks was reduced by 100 basis points, from 6.50% to 5.50% of net demand and time liabilities (NDTL). This reduction was implemented in two stages: first to 6.00% effective from the fortnight beginning October 25, 2008, and then to 5.50% effective from the fortnight beginning November 8, 2008.

What it means for you

This CRR cut releases significant liquidity into the banking system, enabling banks to lend more and ease credit conditions during the 2008 global financial crisis. For lenders, lower CRR reduces the cost of funds and improves profitability, but also signals RBI's concern about economic slowdown. Banks must adjust their reserve maintenance schedules accordingly to comply with the new ratios.

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 daily CRR maintenance for the fortnight starting October 25, 2008, to target 6.00% of NDTL.
Prepare for the second stage reduction to 5.50% effective November 8, 2008, and update internal systems.
Communicate the revised CRR requirements to treasury and compliance teams to avoid penalties.
Monitor liquidity position to deploy released funds optimally in lending or investments.

Who it affects

All scheduled commercial banks (excluding Regional Rural Banks), Treasury and compliance departments, Bank lending and credit operations

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 11:44 IST
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Status change: withdrawn 05 Aug 2026, 04:00 IST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 effective date for the first CRR reduction?

The first reduction to 6.00% is effective from the fortnight beginning October 25, 2008.

What is the final CRR rate after both stages?

The final CRR rate is 5.50% of NDTL, effective from the fortnight beginning November 8, 2008.

Does this circular apply to Regional Rural Banks?

No, this circular applies to all scheduled commercial banks excluding Regional Rural Banks.

📜 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 #2044: DBOD.No.Ret.BC.70/12.01.001/2008-2009 — "Notification on Maintenance of CRR" dated November 3, 2008”

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

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 480 kb ) CRR reduced RBI/2008-09/254 Ref: DBOD.No.Ret.BC.71/12.01.001/2008-09 November 03, 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.61 /12.01.001/ 2008-09 dated October 15, 2008 on the captioned subject. 2. On a review of the current and evolving macroeconomic situation and liquidity conditions in the global and domestic financial markets, and as set out in the RBI Press Release 2008-2009/603 dated November 01, 2008 , it has been decided to reduce the Cash Reserve Ratio (CRR) for Scheduled Commercial Banks by 100 basis points from 6.50 per cent to 5.50 per cent of their net demand and time liabilities (NDTL) in two stages, effective from fortnights as indicated below: Effective date (i.e., the fortnight beginning from) CRR on net demand and time liabilities (per cent) October 25, 2008 6.00 November 8, 2008 5.50 3. A copy of the relative notification DBOD. No. Ret. BC.70 /12.01.001/2008-2009 dated November 03, 2008 is enclosed. 4. Please acknowledge receipt. Yours faithfully ( P. K. Mahapatra ) General Manager DBOD.No.Ret.BC.70 /12.01.001/2008-2009 November 03, 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 the earlier notification DBOD.No.Ret.BC.60/12.01.001/2008-09 dated October 15, 2008 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Commercial Bank of its net demand and time liabilities shall, from effective dates mentioned below, be at the percentage points as indicated thereagainst Effective date (i.e., the fortnight beginning from) CRR on net demand and time liabilities (per cent) October 25, 2008 6.00 November 8, 2008 5.50 (Anand Sinha) 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 &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/254 · issued 03 Nov 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=4594&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.