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UCB Balances with IDBI Bank: CRR/SLR Treatment under Sections 18(1)(c) and 24(2)(a) of B.R. Act, 1949 (AACS)

Current · Source: Reserve Bank of India · RBI/2008-09/93 · issued 11 Jul 2008 · ~2 min read

Quick answerBalances held by Urban Co-operative Banks in current accounts with IDBI Bank Limited cannot be counted as 'net balance in current account' for CRR/SLR purposes under Sections 18(1)(c) and 24(2)(a) of the B.R. Act, 1949 (AACS). UCBs that are currently reporting such balances under CRR/SLR must intimate the position as on June 30, 2008 to respective RBI Regional Offices in the annexed format.

The rule, in the simplest words

Urban Co-operative Banks (UCBs) cannot count money in their current accounts at IDBI Bank as 'cash' for CRR/SLR (the amount of cash they must keep as a safety rule).
Only money in current accounts at State Bank of India, a subsidiary bank, or a corresponding new bank counts as cash for CRR/SLR.
If a UCB was wrongly counting IDBI Bank balances as cash for CRR/SLR, it must stop and report the amount as of June 30, 2008 to its RBI Regional Office using a special form.

How it plays out — a real example

A treasury officer in Indore, Priya, reviews her UCB's cash report and sees they included ₹50 lakh from their IDBI Bank current account in CRR/SLR. She remembers the new rule: IDBI Bank doesn't count. So she removes that amount, recalculates the required cash, and sends the June 30, 2008 balance to the RBI Regional Office in the given format, ensuring her bank stays compliant.

What changed

RBI clarified that IDBI Bank Limited is not among the banks (State Bank of India, a subsidiary bank, and a corresponding new bank) whose current account balances are treated as cash for CRR/SLR under Sections 18(1)(c) and 24(2)(a) of the B.R. Act, 1949 (AACS). UCBs that had been including such balances in their CRR/SLR calculations must now exclude them and report the position as on June 30, 2008.

What it means for you

UCBs will need to adjust their CRR/SLR compliance calculations by removing current account balances with IDBI Bank from eligible cash. This may increase the amount of other liquid assets required to meet statutory ratios. Banks must report the position as of June 30, 2008 to their respective RBI Regional Offices using the prescribed format.

What you must do

If your UCB maintains current account balances with IDBI Bank Limited and currently reports them under CRR/SLR, identify the position as on June 30, 2008.
Exclude these balances from CRR/SLR calculations under Sections 18(1)(c) and 24(2)(a) of the B.R. Act, 1949 (AACS).
Submit the required data in the annexed format to your respective RBI Regional Office.
Update internal systems and reporting templates to ensure ongoing compliance.

Who it affects

All Primary (Urban) Co-operative Banks, UCBs maintaining current accounts with IDBI Bank Limited and currently reporting them under CRR/SLR

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 13:04 IST
clarified_by — UCB Balances with IDBI Bank: CRR/SLR Exemption

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Why can't IDBI Bank balances be counted for CRR/SLR?

Under Sections 18(1)(c) and 24(2)(a) of the B.R. Act, 1949 (AACS), only net balances maintained in current accounts with State Bank of India, a subsidiary bank, and a corresponding new bank are treated as cash for CRR/SLR. IDBI Bank is not included in that list.

What should UCBs do if they have already reported these balances?

UCBs that maintain current account balances with IDBI Bank Limited and presently report them under CRR/SLR must intimate the actual position as on June 30, 2008 to their respective RBI Regional Office using the annexed format, and adjust future CRR/SLR filings accordingly.

Does this circular affect other types of cooperative banks?

The circular is addressed to Chief Executive Officers of All Primary (Urban) Co-operative Banks. Other cooperative banks should check their specific regulatory guidelines.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Clarified by UCB Balances with IDBI Bank: CRR/SLR Exemption

RBI’s words: “Please refer to our circular UBD (PCB). Cir. No.3/12.05.001/2008-09 dated July 11, 2008 on the above subject.”

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

RBI/2008-09/93 

 UBD.BPD (PCB) Cir No: 3 /12.05.001/2008-09 

 July 11, 2008 

 Chief Executive Officers of

 All Primary (Urban) Co-operative Banks

 Dear Sir

 Balances held by UCBs with IDBI Bank Limited- Treatment for CRR/SLR purpose- 

 As you are aware, in terms of Section 18(1) (c) and 24(2) (a) of the B.R. Act, 1949 (AACS), net balance maintained in current account by the co-operative banks with the following banks are treated as cash for the purpose of CRR/SLR.

 i) State Bank of India

 ii) a subsidiary bank, and

 iii) a corresponding new bank.

 2 . As IDBI Bank Limited is not one of those banks mentioned above, the balance maintained by UCBs in current account with IDBI Bank Limited would not be eligible for being reckoned as 'net balance in current account' for the purpose of CRR/SLR under Section 18 and 24 of the B.R. Act, 1949 (AACS). 

 3 . UCBs maintaining current account balances with IDBI Bank Limited, and presently reporting the same under CRR/SLR, are advised to intimate the position as on June 30, 2008 to respective Regional Offices of Reserve Bank in the format Annexed .

 Yours faithfully,

 (A.K. Khound) 

 Chief General Manager-in-Charge. 

 Annex 

 (Rs. in lakh)

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/93 · issued 11 Jul 2008. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

💻 IT / Systems

Update internal systems and reporting templates to ensure ongoing compliance.

📜 Compliance

If your UCB maintains current account balances with IDBI Bank Limited and currently reports them under CRR/SLR, identify the position as on June 30, 2008.
Exclude these balances from CRR/SLR calculations under Sections 18(1)(c) and 24(2)(a) of the B.R. Act, 1949 (AACS).
Submit the required data in the annexed format to your respective RBI Regional Office.

Grouped from the action items above — a single circular may involve more than one team.

Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Primary (Urban) Co-operative Banks, UCBs maintaining current accounts with IDBI Bank Limited and currently reporting them under CRR/SLR), your first concrete step on “UCB Balances with IDBI Bank: CRR/SLR Treatment under Sections 18(1)(c) and 24(2)(a) of B.R. Act, 1949 (AACS)” is: “If your UCB maintains current account balances with IDBI Bank Limited and currently reports them under CRR/SLR, identify the position as on June 30, 2008.” (RBI issued this 11 Jul 2008).

Circular: RBI/2008-09/93 -- UCB Balances with IDBI Bank: CRR/SLR Treatment under Sections 18(1)(c) and 24(2)(a) of B.R. Act, 1949 (AACS)
Issued: 11 Jul 2008
Action required: If your UCB maintains current account balances with IDBI Bank Limited and currently reports them under CRR/SLR, identify the position as on June 30, 2008.
Action required: Exclude these balances from CRR/SLR calculations under Sections 18(1)(c) and 24(2)(a) of the B.R. Act, 1949 (AACS).
Action required: Submit the required data in the annexed format to your respective RBI Regional Office.
Action required: Update internal systems and reporting templates to ensure ongoing compliance.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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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=4367&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.