HomeCirculars › RBI/2009-10/296

CRR Hiked 75 bps to 5.75% in Two Stages from Feb 2010

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/296 · issued 29 Jan 2010 · ~2 min read
Quick answerRBI raised CRR by 75 bps from 5.00% to 5.75% of NDTL, effective in two stages: 5.50% from Feb 13, 2010, and 5.75% from Feb 27, 2010. This move, based on the Third Quarter Review of Monetary Policy 2009-10, aims to absorb excess liquidity.

What changed

The Cash Reserve Ratio (CRR) for Scheduled Commercial Banks (excluding RRBs) was increased by 75 basis points from 5.00% to 5.75% of net demand and time liabilities (NDTL). The hike is implemented in two stages: 5.50% effective from the fortnight beginning February 13, 2010, and 5.75% from the fortnight beginning February 27, 2010.

What it means for you

Banks will need to set aside a larger portion of their deposits as reserves with RBI, reducing lendable resources. This tightens liquidity and may pressure net interest margins, as the additional CRR balances earn no interest. Lenders must recalibrate their asset-liability management and liquidity planning to comply with the phased increase.

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

All Scheduled Commercial Banks (excluding Regional Rural Banks), Treasury departments, Asset-liability management (ALM) teams, Credit and lending divisions

❓ Common questions

Regulatory timeline

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

What is the new CRR rate and when does it take effect?

The CRR is increased from 5.00% to 5.75% of NDTL in two stages: 5.50% from the fortnight starting February 13, 2010, and 5.75% from the fortnight starting February 27, 2010.

Why did RBI hike the CRR?

Based on the macroeconomic assessment in the Third Quarter Review of Monetary Policy 2009-10, RBI decided to increase CRR to absorb excess liquidity from the banking system.

Are Regional Rural Banks affected by this change?

No, this circular applies to all Scheduled Commercial Banks excluding Regional Rural Banks.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
Partially modified by CRR Hiked 25 bps to 6% from April 24, 2010
RBI’s words: “in partial modification of the earlier notification DBOD.No.Ret.BC.70/12.01.001/2009-10 dated January 29, 2010”
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1758: DBOD.No.Ret.BC.70/12.01.001/2009-2010 — "Notification on Maintenance of CRR" dated January 29, 2010”
📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 493 kb ) Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of CRR RBI/2009-10/296 Ref: DBOD.No.Ret.BC. 71/12.01.001/2009-10 January 29, 2010 All Scheduled Commercial Banks (excluding Regional Rural Banks) Dear Sir, Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of CRR Please refer to our Circular DBOD. No. Ret. BC.103/12.01.001/ 2008-09 dated January 02, 2009 on the captioned subject. 2. On the basis of the current macroeconomic assessment, as set out in the Third Quarter Review of Monetary Policy 2009-10 issued on January 29, 2010, it has been decided to increase the Cash Reserve Ratio (CRR) for Scheduled Commercial Banks by 75 basis points from 5.00 per cent to 5.75 per cent of their net demand and time liabilities (NDTL) in two stages, effective the fortnights as indicated below: Effective date (i.e., the fortnight beginning from) CRR on net demand and time liabilities (per cent) February 13, 2010 5.50 February 27, 2010 5.75 3. A copy of the relative notification DBOD. No. Ret. BC.70/12.01.001/2009-10 dated January 29, 2010 is enclosed. 4. Please acknowledge receipt. Yours faithfully (P. K. Mahapatra) General Manager Encl:1 DBOD.No.Ret.BC. 70 /12.01.001/2009-2010 January 29, 2010 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 the earlier notification DBOD.No.Ret.BC102/12.01.001/2008-09 dated January 2, 2009, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Commercial Bank shall, from effective dates mentioned below, be at the percentage points indicated thereagainst. Effective date (i.e., the fortnight beginning from) CRR on net demand and time liabilities (per cent) February 13, 2010 5.50 February 27, 2010 5.75 (G. Gopalakrishna) 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/2009-10/296 · issued 29 Jan 2010. The plain-English explanation above is BankPulse’s own independent summary.
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