RBI's own words: “in supersession of its notification UBD(PCB)No./2/12.03.000/2008-09 dated October 07, 2008” — RBI/2008-2009/216
Source: Reserve Bank of India · RBI/2008-2009/206 · issued 07 Oct 2008 · ~1 min read
Quick answerRBI reduced CRR for Scheduled Primary (Urban) Co-operative Banks by 50 bps from 9.00% to 8.50% of NDTL, effective fortnight from October 11, 2008. This temporary, ad hoc measure aims to ease liquidity amid global and domestic stress.
The rule, in the simplest words
RBI (the central bank of India) cut the CRR (the portion of deposits banks must keep with RBI) for urban co-op banks from 9% to 8.5% of NDTL (total deposits and borrowings).
This change starts from the two-week period beginning October 11, 2008.
This is a temporary, short-term measure that RBI can change again based on how much cash is available in the banking system.
The cut frees up extra money for urban co-op banks to use for lending or other purposes.
How it plays out — a real example
A co-operative bank branch officer in Indore, Priya, checks the new CRR rate of 8.5% for her urban co-op bank. She recalculates the cash her bank must keep with RBI, finds they now have more funds available, and approves a small business loan for a local shopkeeper that she had to postpone last week due to tight liquidity.
What changed
RBI lowered the Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative Banks by 50 basis points, bringing it down to 8.50% of net demand and time liabilities. The change takes effect from the fortnight beginning October 11, 2008, and is explicitly temporary, subject to ongoing review based on liquidity conditions.
What it means for you
This CRR reduction releases additional funds for urban co-operative banks, improving their liquidity position during a period of global financial turmoil. Banks can now deploy a slightly larger share of deposits for lending or other purposes, though the relief is intended as a short-term measure and may be reversed as conditions evolve.
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
Recalculate your CRR maintenance for the fortnight starting October 11, 2008, using the new 8.50% rate on NDTL.
Monitor RBI announcements closely as this is a temporary measure subject to continuous review.
Assess the impact on your liquidity position and adjust short-term asset-liability management accordingly.
Who it affects
All Scheduled Primary (Urban) Co-operative Banks, Treasury and ALM teams of these banks, Depositors and borrowers of urban co-operative banks
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the new CRR rate for urban co-operative banks?
The CRR has been reduced from 9.00% to 8.50% of net demand and time liabilities (NDTL), effective from the fortnight beginning October 11, 2008.
Is this CRR cut permanent?
No, the circular explicitly states this measure is ad hoc and temporary in nature, and will be reviewed continuously based on evolving liquidity conditions.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “in supersession of its notification UBD(PCB)No./2/12.03.000/2008-09 dated October 07, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-2009/206
Ref: UBD (PCB).No./ 4 /12.03.000/2008-09
October 07, 2008
The Chief Executive Officers of
All Scheduled Primary (Urban) Co-operative Banks
Dear Sir,
Section 42(1) of Reserve Bank of India Act, 1934-
Maintenance of Cash Reserve Ratio (CRR)
Please refer to our Circular RBI 2008-2009/110 UBD (PCB) Cir. No.1/ 12.03.000/ 2008-09 dated July 31, 2008 on the captioned subject. On a review of the current liquidity situation in the context of global and domestic developments, and as set out in the RBI Press Release 2008-2009/447 dated October 06, 2008,ithas been decided to reduce the Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative Banks by 50 basis points from 9.00 per cent to 8.50 per cent of their net demand and time liabilities (NDTL) with effect from the fortnight beginning October 11, 2008. This measure is ad hoc, temporary in nature and will be reviewed on a continuous basis in the light of the evolving liquidity conditions.
2. A copy of the relative notification UBD (PCB) No/ 2 /12.03.000/2008-09 dated October 07, 2008 is enclosed.
3. Please acknowledge receipt.
Yours faithfully,
(Smt.Uma Shankar)
Chief General Manager
UBD(PCB)No/ 2 /12.03.000/2008-09
October 07, 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./1/12.03.000/2008-09 dated July 31, 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 reduced by 50 basis points to 8.50 per cent of its net demand and time liabilities from the fortnight beginning from October 11, 2008.
(V.S.Das)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-2009/206 · issued 07 Oct 2008. The plain-English explanation above is BankPulse’s own independent summary.
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.
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=4521&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
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 ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.