Home › Circulars › RBI/2009-2010/415

RBI Hikes CRR for Urban Co-op Banks by 25 bps

Current · Source: Reserve Bank of India · RBI/2009-2010/415 · issued 21 Apr 2010 · ~1 min read
Quick answerRBI raised CRR for Scheduled Primary (Urban) Co-operative Banks from 5.75% to 6.00% of NDTL, effective fortnight starting April 24, 2010, aligning with monetary policy stance.
The rule, in the simplest words
How it plays out — a real example

A co-operative bank branch officer in Indore, Mr. Kumar, must now set aside 6.00% of the deposits he receives as reserves with RBI, reducing the amount of money he can lend to customers. He will need to review his loan disbursement plans and ensure he has enough liquidity to meet the increased reserve requirement, without breaching statutory norms.

What changed

The Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative Banks was increased by 25 basis points, from 5.75% to 6.00% of net demand and time liabilities (NDTL). This change takes effect from the fortnight beginning April 24, 2010, as per the RBI notification dated April 21, 2010.

What it means for you

Urban co-operative banks will need to set aside a higher proportion of their deposits as reserves with RBI, reducing lendable resources. This move tightens liquidity in the banking system, potentially impacting loan growth and profitability for these banks. It reflects RBI's assessment of inflationary pressures and its policy stance to manage money supply.

What you must do

Who it affects

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

❓ Common questions

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

The CRR has been increased from 5.75% to 6.00% of net demand and time liabilities (NDTL), effective from the fortnight beginning April 24, 2010.

Why did RBI increase the CRR for UCBs?

The hike is based on RBI's current assessment and aligns with the monetary policy stance outlined in the April 20, 2010 Monetary Policy Statement, aimed at managing liquidity and inflation.

When does the new CRR requirement become effective?

It applies from the fortnight starting April 24, 2010, as per the notification dated April 21, 2010.

📜 Read the original circular — full text as issued by RBI
RBI/2009-2010/415 Ref: UBD (PCB).No./3/12.03.000/2009-10 April  21, 2010 The Chief Executive Officers of All Scheduled Primary (Urban) Co-operative Banks Dear Sir, Section 42(1) of Reserve Bank of India Act, 1934- Maintenance of Cash Reserve Ratio (CRR) Please refer to our Circular UBD (PCB) No.2/ 12.03.000/ 2009-10 dated February 01, 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, ithas been decided to increase the Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative 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 UBD (PCB) No/ 2 /12.03.000/2009-10   dated April 21, 2010 is enclosed. 4.  Please acknowledge receipt. Yours faithfully, (A.K.Khound) Chief General Manager in - Charge Encl. 1 UBD(PCB)No/2/12.03.000/2009-10 April  21, 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./1/12.03.000/2009-10 dated February 01, 2010, 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 be  6.00 per cent of its net demand and time liabilities, from the fortnight beginning April 24, 2010.  (V.K.Sharma) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-2010/415 · issued 21 Apr 2010. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamSenior Management / BoardRisk ManagementBusiness Head / Vertical HeadInternal Audit
🛠 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
💻 IT / Systems
  • Update internal systems and reporting processes to reflect the revised CRR rate.
📜 Compliance
  • 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 increased reserve requirement without breaching statutory norms.
  • Review loan disbursement and investment plans to align with reduced deployable funds.
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 and ALM teams of UCBs, Compliance departments of UCBs), your first concrete step on “RBI Hikes CRR for Urban Co-op Banks by 25 bps” is: “Recalculate CRR maintenance for the fortnight starting April 24, 2010, using the new 6.00% rate on NDTL.” (RBI issued this 21 Apr 2010).

  1. Circular: RBI/2009-2010/415 -- RBI Hikes CRR for Urban Co-op Banks by 25 bps
  2. Issued: 21 Apr 2010
  3. Action required: Recalculate CRR maintenance for the fortnight starting April 24, 2010, using the new 6.00% rate on NDTL.
  4. Action required: Ensure adequate liquidity buffers to meet the increased reserve requirement without breaching statutory norms.
  5. Action required: Review loan disbursement and investment plans to align with reduced deployable funds.
  6. Action required: Update internal systems and reporting processes to reflect the revised CRR rate.
  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=5611&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 ↗
—