Home › Circulars › RBI/2008-2009/216

CRR Cut for Urban Co-op Banks: 150 bps Reduction

No longer current — replaced by Maintenance of Cash Reserve Ratio - Urban Co-operative Banks

Source: Reserve Bank of India · RBI/2008-2009/216 · issued 10 Oct 2008 · ~2 min read

Quick answerRBI slashed CRR for Scheduled Primary (Urban) Co-operative Banks by 150 bps to 7.50% of NDTL, effective October 11, 2008, replacing an earlier 50 bps cut. This move aims to ease liquidity amid global and domestic pressures.

What changed

Earlier on October 7, 2008, RBI had announced a 50 bps CRR reduction from 9.00% to 8.50% for these banks. Now, based on a review of liquidity conditions, the reduction has been deepened to 150 bps, bringing CRR down to 7.50% of NDTL, effective from the same fortnight starting October 11, 2008.

What it means for you

Urban co-operative banks will have to hold less cash with RBI, freeing up significant funds for lending or other deployment. This aggressive easing signals RBI's concern over tight liquidity and should help these banks manage their cash flows better. However, the move is specific to scheduled primary urban co-operative banks and does not apply to other bank categories.

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 beginning October 11, 2008, using the new 7.50% rate on NDTL.
Update internal systems and reporting templates to reflect the revised CRR requirement.
Communicate the change to your treasury and operations teams to ensure compliance from the effective date.
Monitor liquidity position to optimize deployment of released funds.

Who it affects

Scheduled Primary (Urban) Co-operative Banks, Treasury departments of these banks, Compliance and operations teams handling CRR maintenance

❓ Common questions

Regulatory timeline

Stated effective date effective October 11, 2008
Decoded by BankPulse 2026-06-19 12:16 IST
Superseded by — Maintenance of Cash Reserve Ratio - Urban Co-operative Banks
Superseded by — CRR Cut for Urban Co-op Banks: 250 bps Reduction to 6.5%
Status change: superseded 05 Aug 2026, 04:00 IST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 new CRR rate for Scheduled Primary (Urban) Co-operative Banks?

The CRR has been reduced by 150 basis points from 9.00% to 7.50% of net demand and time liabilities (NDTL), effective from the fortnight beginning October 11, 2008.

Why did RBI increase the CRR cut from 50 bps to 150 bps?

RBI reviewed the evolving liquidity situation in the context of global and domestic developments and decided a larger cut was needed to ease liquidity conditions.

Does this CRR reduction apply to all banks?

No, this notification specifically applies only to Scheduled Primary (Urban) Co-operative Banks. Other bank categories are not covered by this circular.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)

Superseded by Maintenance of Cash Reserve Ratio - Urban Co-operative Banks

Superseded by CRR Cut for Urban Co-op Banks: 250 bps Reduction to 6.5%

RBI’s words: “in supersession of its notification UBD(PCB)No./3/12.03.000/2008-09 dated October 10, 2008”

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

RBI/2008-2009/216 

 Ref: UBD (PCB).No./5 /12.03.000/2008-09

 October 10, 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 2008-2009/206 UBD (PCB) Cir. No.4/ 12.03.000/ 2008-09 dated October 07, 2008 on the captioned subject advising reduction in Cash Reserve Ratio (CRR) by 50 basis points from 9.00 per cent to 8.50 per cent of net demand and time liabilities with effect from October 11, 2008.

 2. On a review of the evolving liquidity situation in the context of global and domestic developments, and as set out in the RBI Press Release 2008-2009/467 of date,ithas been decided to reduce the Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative Banks by 150 basis points from 9.00 per cent to 7.50 per cent of their net demand and time liabilities (NDTL) instead of the 50 basis points (from 9.00 percent to 8.50 percent) reduction  with effect from the fortnight beginning October 11, 2008. 

 3. A copy of the relative notification UBD (PCB) No/3/12.03.000/2008-09  dated October 10, 2008 is enclosed. 

 4.  Please acknowledge receipt. 

 Yours faithfully,

 (R.L Das) 

 General Manager in Charge

 UBD(PCB)No/ 3/12.03.000/2008-09 

 October 10, 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 its notification UBD(PCB)No./2/12.03.000/2008-09 dated October 07, 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 150 basis points to 7.50 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/2008-2009/216 · issued 10 Oct 2008. The plain-English explanation above is BankPulse’s own independent summary.

🧰 Tools — save, print, templates & related

Most relevant forTreasury Team / ALM Compliance Team Branch Manager — PSU / Co-op / RRB (sanctioning powers)Branch Operations (Accounts / FD / CASA)Senior Management / Board Internal Audit

🛠 Banker’s toolkit — checklists & reply templates →

Related circulars · Department of Regulation

CRR Cut for Urban Co-op Banks: 250 bps Reduction to 6.5%SFB Pillar 3 Disclosure Norms Aligned with Basel UCB Deposit Rate Disclosure & Uniformity Rules Updated LAB Deposit Rate Disclosure & Uniformity Rules Tightened Payments Banks: Interest Rates Must Match Disclosed Schedule

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=4531&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.