HomeCirculars › RBI/2009-10/212

CRR on CBLO Transactions for Scheduled StCBs from Nov 21, 2009

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/212 · issued 09 Nov 2009 · ~1 min read
Quick answerFrom November 21, 2009, scheduled state co-operative banks must include CBLO liabilities with CCIL in NDTL for CRR. Only liabilities to the banking system as per RBI Act Section 42(1)(e) remain exempt. This aligns with the Second Quarter Review of Monetary Policy 2009-10.

What changed

Previously, CBLO liabilities were exempt from CRR for scheduled state co-operative banks. Now, with effect from the fortnight starting November 21, 2009, these liabilities must be included in NDTL for CRR computation. The base for the first fortnight is the reporting Friday of November 6, 2009.

What it means for you

Scheduled state co-operative banks will face higher CRR requirements as CBLO liabilities are now part of NDTL. This increases their statutory reserve burden, potentially reducing lendable resources. Banks must adjust their liquidity management and reporting systems to comply from the specified fortnight.

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

Who it affects

Scheduled State Co-operative Banks, Treasury departments of StCBs, Compliance teams of StCBs

❓ Common questions

Regulatory timeline

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

When does this CRR change take effect?

It takes effect from the fortnight beginning November 21, 2009, with the base NDTL computed from the reporting Friday of November 6, 2009.

Are all liabilities now subject to CRR?

No, liabilities to the banking system as defined under clause (e) of the Explanation to Section 42(1) of the RBI Act, 1934 remain exempt from CRR.

What triggered this change?

The change was announced in the Second Quarter Review of Monetary Policy 2009-10 released on October 27, 2009.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1787: RPCD.CO.RF.BC.No.40/07.02.01/2009-10 — "Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories" dated November 9, 2009”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/212 RPCD.CO.RF.BC.No.40/07.02.01/2009-10   November 09, 2009 All Scheduled State Co-operative Banks Dear Sir, Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories Please refer to our circular RPCD.CO.RF.BC.No.77/07.02.01/2006-07 dated April 24, 2007 on the captioned subject. 2. As announced in the Second Quarter Review of Monetary Policy 2009-10 released on October 27, 2009, it has been decided that liabilities of scheduled state co-operative banks arising out of transactions in Collateralised Borrowing and Lending Obligations (CBLO) with Clearing Corporation of India Ltd. (CCIL) shall be subject to maintenance of CRR with effect from the fortnight beginning November 21, 2009. Accordingly, net demand and time liabilities (NDTL) reckoned for CRR shall include liabilities arising out of CBLO transactions for the reporting Friday of November 6, 2009 which forms the base for computation of CRR for the fortnight beginning November 21, 2009. For the subsequent fortnights, NDTL reckoned for CRR maintenance will continue to include liabilities arising out of CBLO transactions. 3. Accordingly, with effect from fortnight beginning November 21, 2009, only liabilities to the banking system in India as computed under clause (e) of the Explanation to Section 42(1) of the Reserve Bank of India Act, 1934 would be exempted for computation of NDTL under Section 42(1) of RBI Act, 1934. Yours faithfully, (R.C.Sarangi) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/212 · issued 09 Nov 2009. The plain-English explanation above is BankPulse’s own independent summary.
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Topics: Co-operative Banks
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Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. KYC / AML · Gross NPA (GNPA) · Deposit insurance (DICGC) · Scheduled Commercial Bank (SCB)

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