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No longer current — withdrawn, no replacement on file yet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
Adjust your bank's CRR maintenance system to reflect the new rates: 5.50% from Feb 13, 2010, and 5.75% from Feb 27, 2010.
Review and update liquidity forecasts to account for the incremental CRR impoundment over the two fortnights.
Communicate the revised CRR requirements to your treasury and operations teams to ensure compliance.
Assess the impact on lending capacity and adjust credit growth plans accordingly.
Who it affects
All Scheduled Commercial Banks (excluding Regional Rural Banks), Treasury departments, Asset-liability management (ALM) teams, Credit and lending divisions
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 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 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)
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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BankPulse Compliance Evidence Pack — generated 03 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=5479&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.
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