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CRR hiked 25 bps to 9% for Scheduled Primary (Urban) Co-operative Banks from fortnight beginning Aug 30, 2008

Current · Source: Reserve Bank of India · RBI/2008-2009/110 · issued 31 Jul 2008 · ~1 min read

Quick answerRBI raised CRR for Scheduled Primary (Urban) Co-operative Banks by 25 basis points to 9% of NDTL, effective fortnight starting August 30, 2008, to manage liquidity.

The rule, in the simplest words

RBI raised the cash reserve ratio [CRR: money banks must keep with RBI] by 0.25% for Scheduled Primary (Urban) Co-operative Banks.
The new CRR is 9% of the bank's net demand and time liabilities.
This rule starts from the two-week period that begins on August 30, 2008.
The increase is meant to manage liquidity, as per the Governor's First Quarter Review of Annual Monetary Policy for 2008-09 issued on July 29, 2008.

How it plays out — a real example

Ravi, the treasurer of a scheduled urban co-op bank, checks the circular and updates his CRR calculation spreadsheet to 9% for the fortnight starting Aug 30. He then alerts the funds desk to park an additional 25 bps of NDTL with RBI, ensuring compliance.

What changed

CRR for these banks increased by 25 bps to 9% of NDTL, effective from the fortnight beginning August 30, 2008, as per RBI circular dated July 31, 2008.

What it means for you

Urban co-operative banks must hold more funds as reserves with RBI, reducing lendable resources. This tightens liquidity and may pressure margins, aligning with monetary policy stance.

What you must do

Recalculate CRR requirement at 9% of NDTL for the fortnight from Aug 30, 2008.
Ensure adequate liquidity to meet the higher reserve requirement without default.
Update internal systems and reporting to reflect the new CRR rate.
Communicate the change to treasury and compliance teams immediately.

Who it affects

All Scheduled Primary (Urban) Co-operative Banks

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-07-31 04:05 IST
partially_modified_by — CRR Cut for Urban Co-op Banks: 50 bps Relief

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

When does the new CRR take effect?

From the fortnight beginning August 30, 2008.

What is the new CRR percentage?

9% of net demand and time liabilities.

Which banks are covered?

All Scheduled Primary (Urban) Co-operative Banks.

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

Partially modified by CRR Cut for Urban Co-op Banks: 50 bps Relief

RBI’s words: “in partial modification of its notification UBD(PCB)No./1/12.03.000/2008-09 dated July 31, 2008”

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

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No.6/ 12.03.000/ 2007-08 dated June 26, 2008 on the captioned subject. As set out in the Governor's statement on the First Quarter Review of Annual Monetary Policy for the year 2008-09 issued on July 29, 2008, on a review of the current liquidity situation,ithas been decided to increase Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative Banks by 25 basis points to 9.00 per cent of its Net Demand and Time Liabilities with effect from the fortnight beginning August 30, 2008. 2. A copy of the relative notification UBD (PCB) No/ 1 /12.03.000/2008-09 dated July 31, 2008 is enclosed. 3. Please acknowledge receipt. Yours faithfully, (A.K.Khound) Chief General Manager in-Charge UBD(PCB)No/ 1 /12.03.000/2008-09 July 31, 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 its notification UBD(PCB)No.13/12.03.000/2007-08 dated June 26, 2008, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Primary (Urban) Co-operative Bank shall be 9.00 per cent of its net demand and time liabilities from the fortnight beginning from August 30, 2008. (V.S.Das) 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 © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-2009/110 · issued 31 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 to reflect the new CRR rate.

📜 Compliance

Recalculate CRR requirement at 9% of NDTL for the fortnight from Aug 30, 2008.
Ensure adequate liquidity to meet the higher reserve requirement without default.
Communicate the change to treasury and compliance teams immediately.

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 Scheduled Primary (Urban) Co-operative Banks), your first concrete step on “CRR hiked 25 bps to 9% for Scheduled Primary (Urban) Co-operative Banks from fortnight beginning Aug 30, 2008” is: “Recalculate CRR requirement at 9% of NDTL for the fortnight from Aug 30, 2008.” (RBI issued this 31 Jul 2008).

Circular: RBI/2008-2009/110 -- CRR hiked 25 bps to 9% for Scheduled Primary (Urban) Co-operative Banks from fortnight beginning Aug 30, 2008
Issued: 31 Jul 2008
Action required: Recalculate CRR requirement at 9% of NDTL for the fortnight from Aug 30, 2008.
Action required: Ensure adequate liquidity to meet the higher reserve requirement without default.
Action required: Update internal systems and reporting to reflect the new CRR rate.
Action required: Communicate the change to treasury and compliance teams immediately.
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=4388&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.