Home › Circulars › RBI/2009-2010/302

CRR Hiked 75 bps for Urban Co-op Banks in Two Stages

Current · Source: Reserve Bank of India · RBI/2009-2010/302 · issued 01 Feb 2010 · ~2 min read
Quick answerRBI raised CRR for Scheduled Urban Co-operative Banks by 75 bps to 5.75% of NDTL, effective in two fortnights starting February 13 and February 27, 2010, to tighten liquidity amid macroeconomic assessment.
The rule, in the simplest words
How it plays out — a real example

A treasury officer named Rohan at a primary urban co‑operative bank in Indore checks the bank’s NDTL for the week ending February 12. He notes that the CRR must now be 5.50%, so he adjusts the reserve calculation and informs the lending desk that the bank will have slightly less money to issue new loans. By February 27, he repeats the process for the 5.75% rate, ensuring the bank stays compliant and avoids penalties.

What changed

The Cash Reserve Ratio for Scheduled Primary (Urban) Co-operative Banks was increased by 75 basis points from 5.00% to 5.75% of net demand and time liabilities. 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

Urban co-operative banks will need to park more funds with RBI as CRR, reducing lendable resources and impacting liquidity. This move signals RBI's intent to absorb excess liquidity from the banking system to manage inflationary pressures, as per the Third Quarter Review of Monetary Policy 2009-10. Banks must adjust their asset-liability management to meet the higher reserve requirement in two phases.

What you must do

Who it affects

Scheduled Primary (Urban) Co-operative Banks, Treasury departments of UCBs, Compliance and risk management teams at UCBs

❓ Common questions

What is the new CRR rate for urban co-operative banks?

The CRR is increased to 5.50% of NDTL from February 13, 2010, and further to 5.75% from February 27, 2010.

Why did RBI hike CRR for UCBs?

Based on the macroeconomic assessment in the Third Quarter Review of Monetary Policy 2009-10, RBI decided to absorb excess liquidity to manage inflation.

When do the new CRR rates become effective?

The first stage (5.50%) applies from the fortnight starting February 13, 2010, and the second stage (5.75%) from the fortnight starting February 27, 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 ( 60 kb ) UCBs - Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of Cash Reserve Ratio (CRR) RBI/2009-2010/302 Ref: UBD (PCB).No./ 2 /12.03.000/2009-10 February 01, 2010 The Chief Executive Officers of All Scheduled Primary (Urban) Co-operative Banks Dear Sir, UCBs - Section 42(1) of Reserve Bank of India Act, 1934- Maintenance of Cash Reserve Ratio (CRR) Please refer to our Circular UBD (PCB) Cir. No.9/ 12.03.000/ 2008-09 dated January 05, 2009 on the captioned subject. 2. On the basis of the current macroeconomic assessment, as set out in the Third Quarter Review of the Monetary Policy 2009-10 issued on January 29, 2010, ithas been decided to increase the Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative 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 from 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 UBD (PCB) No/1/12.03.000/2009-10 dated February 01, 2010 is enclosed. 4. Please acknowledge receipt. Yours faithfully, (A.K.Khound) Chief General Manager in - Charge Encl. 1 UBD(PCB)No/1/12.03.000/2009-10 February 01, 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 UBD(PCB)No./12/12.03.000/2008-09 dated January 05, 2009, 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, 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 (V.K.Sharma) 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. All Rights Reserved. Sitemap | Disclaimer Website owned and managed by Reserve Bank of India. Contact us on helpdoc[at]rbi[dot]org[dot]in Website last updated date: Jul 27, 2026 Supports: Google Chrome 147+ | Firefox 150+ | Microsoft Edge Version 147+ | Safari 17+ Accessibility Statement | Screen Reader and Accessibility Help
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-2010/302 · issued 01 Feb 2010. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamRisk ManagementSenior Management / BoardInternal AuditData Science / Analytics
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
Browse all departments →
Who does what — compliance checklist
⚙️ Operations
  • Communicate the revised CRR requirement to treasury and operations teams for fortnightly maintenance.
📜 Compliance
  • Recalibrate NDTL projections to ensure CRR compliance at 5.50% from Feb 13 and 5.75% from Feb 27, 2010.
  • Review liquidity buffers and short-term funding strategies to absorb the incremental CRR impact.
  • Monitor RBI's macroeconomic assessments for further policy rate signals.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Scheduled Primary (Urban) Co-operative Banks, Treasury departments of UCBs, Compliance and risk management teams at UCBs), your first concrete step on “CRR Hiked 75 bps for Urban Co-op Banks in Two Stages” is: “Recalibrate NDTL projections to ensure CRR compliance at 5.50% from Feb 13 and 5.75% from Feb 27, 2010.” (RBI issued this 01 Feb 2010).

  1. Circular: RBI/2009-2010/302 -- CRR Hiked 75 bps for Urban Co-op Banks in Two Stages
  2. Issued: 01 Feb 2010
  3. Action required: Recalibrate NDTL projections to ensure CRR compliance at 5.50% from Feb 13 and 5.75% from Feb 27, 2010.
  4. Action required: Review liquidity buffers and short-term funding strategies to absorb the incremental CRR impact.
  5. Action required: Communicate the revised CRR requirement to treasury and operations teams for fortnightly maintenance.
  6. Action required: Monitor RBI's macroeconomic assessments for further policy rate signals.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 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 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=5486&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—