Home › Circulars › RBI/2009-10/407

CRR hiked 25 bps to 6% from Apr 24, 2010

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2009-10/407 · issued 20 Apr 2010 · ~1 min read

Quick answerRBI raised CRR by 25 basis points to 6.00% of NDTL, effective fortnight starting April 24, 2010. This tightens liquidity and increases the reserve requirement for all scheduled commercial banks (excluding RRBs).

The rule, in the simplest words

RBI raised the cash reserve ratio (CRR) by 0.25% (25 basis points) from 5.75% to 6.00%.
This applies to all scheduled commercial banks except Regional Rural Banks (RRBs).
The new rate is calculated on net demand and time liabilities (NDTL) – that is, total deposits minus certain deductions.
The change starts from the fortnight (two-week period) beginning April 24, 2010.
Banks must keep this extra money with RBI, so they have less cash to lend out.

How it plays out — a real example

Ravi, the treasury head at a mid-sized private bank, updates his ALM system to set the CRR target at 6% of NDTL from April 24. He checks that the bank's daily reserve balances will cover the additional 25 bps requirement, avoiding any penalty shortfall.

What changed

The Cash Reserve Ratio (CRR) for scheduled commercial banks was increased from 5.75% to 6.00% of net demand and time liabilities (NDTL). The change takes effect from the fortnight beginning April 24, 2010, as per the Monetary Policy Statement 2010-11.

What it means for you

Banks must now hold an additional 0.25% of their NDTL as reserves with RBI, reducing lendable funds. This move aims to absorb excess liquidity and anchor inflation expectations. Lenders may face slight pressure on net interest margins and may adjust lending rates or deposit mobilization strategies.

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 CRR maintenance for the fortnight starting April 24, 2010, using the new 6.00% rate on NDTL.
Ensure adequate liquidity buffers to meet the higher reserve requirement without breaching daily minimum thresholds.
Communicate the revised CRR impact to treasury and ALM teams for cash flow planning.
Review loan and deposit pricing strategies to offset potential margin compression.

Who it affects

All scheduled commercial banks (excluding Regional Rural Banks), Treasury departments, ALM and liquidity management teams, Retail and corporate lending divisions

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-07-31 04:04 IST
partially_modified_by — CRR Cut by 50 bps to 5.50% from Jan 28, 2012
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

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

When does the new CRR rate become effective?

From the fortnight beginning April 24, 2010.

What is the new CRR percentage?

6.00% of net demand and time liabilities (NDTL).

Are Regional Rural Banks covered by this circular?

No, the circular explicitly excludes Regional Rural Banks.

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

Partially modified by CRR Cut by 50 bps to 5.50% from Jan 28, 2012

RBI’s words: “in partial modification of the earlier notification DBOD.No.Ret.BC.89/12.01.001/2009-10 dated April 20, 2010”

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #1726: DBOD.No.Ret.BC.89/12.01.001/2009-10 — "Notification on Maintenance of CRR" dated April 20, 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 ( 513 kb ) CRR increased RBI/2009-10/407 Ref: DBOD.No.Ret.BC.90 /12.01.001/2009-10 April 20, 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.71/12.01.001/ 2009-10 dated January 29, 2010 on the captioned subject. 2. On the basis of the current assessment and in line with the policy stance, as set out in the Reserve Bank's Monetary Policy Statement 2010-11 issued on April 20, 2010, it has been decided to increase the Cash Reserve Ratio (CRR) for Scheduled Commercial Banks by 25 basis points from 5.75 per cent to 6.00 per cent of their net demand and time liabilities (NDTL) with effect from the fortnight beginning April 24, 2010. 3. A copy of the relative notification DBOD. No. Ret. BC.89 /12.01.001/2009-10 dated April 20, 2010 is enclosed. 4. Please acknowledge receipt. Yours faithfully (P. K. Mahapatra) General Manager Encl:1 DBOD.No.Ret.BC. 89 /12.01.001/2009-2010 April 20, 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.BC.70/12.01.001/2009-10 dated January 29, 2010, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Commercial Bank shall be 6.00 per cent of its net demand and time liabilities from the fortnight beginning April 24, 2010. (Anand Sinha) 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/2009-10/407 · issued 20 Apr 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=5605&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.