Home › Circulars › RBI/2012-13/216

CRR Reduced by 25 bps for StCBs and RRBs

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/216 · issued 18 Sep 2012 · ~1 min read
Quick answerRBI cut CRR for Scheduled State Co-operative Banks and Regional Rural Banks by 25 bps to 4.50% of NDTL, effective September 22, 2012. This frees up funds for lending and liquidity management.

What changed

The Cash Reserve Ratio (CRR) for Scheduled State Co-operative Banks and Regional Rural Banks was reduced by 25 basis points from 4.75% to 4.50% of their Net Demand and Time Liabilities (NDTL). The change takes effect from the fortnight beginning September 22, 2012, as per the notification issued on September 18, 2012.

What it means for you

This reduction lowers the amount of funds these banks must hold with RBI, increasing their lendable resources. It provides additional liquidity to support credit growth and ease cash flow pressures, especially in rural and cooperative banking sectors.

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

Scheduled State Co-operative Banks, Regional Rural Banks

❓ 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 effective date for the CRR reduction?

The new CRR of 4.50% applies from the fortnight beginning September 22, 2012.

Does this circular apply to all banks?

No, it specifically applies to Scheduled State Co-operative Banks and Regional Rural Banks.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1223: RPCD.CO.RCB.RRB.BC.No.27/07.02.01/2012-13 — "Notification on Section 42(1) of the Reserve Bank of India Act, 1934 Maintenance of Cash Reserve Ratio (CRR)" dat”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/216 RPCD.CO.RCB.RRB.BC.No.28/07.02.01/2012-13 September 18, 2012 All Scheduled State Co-operative Banks/ Regional Rural Banks Dear Sir, Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of Cash Reserve Ratio (CRR) Please refer to our circular RPCD.CO.RCB.RRB.BC.No.65/03.05.33/2011-12 dated March 12, 2012 , on the captioned subject. 2. As set out in the Reserve Bank's Press Release 2012-2013/452 dated September 17, 2012 , it has been decided to reduce the Cash Reserve Ratio (CRR) of Scheduled State Co-operative Banks / Regional Rural Banks by 25 basis points from 4.75 per cent to 4.50 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning September 22, 2012. 3. A copy of the relative notification RPCD.CO.RCB.RRB.BC.No.27/ 07.02.01/2012-13 dated September 18, 2012 is enclosed . 4. Please acknowledge receipt to our Regional Office Concerned. Yours faithfully (C.D.Srinivasan) Chief General Manager Encl: one RPCD.CO.RCB.RRB.BC.No.27/07.02.01/2012-13 September 18, 2012 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 RPCD.CO.RCB.RRB.BC.No.64/03.05.33/2011-12 dated March 12, 2012 , the Reserve Bank hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled State Co-operative Bank / Regional Rural Bank shall be 4.50 per cent of its net demand and time liabilities from the fortnight beginning September 22, 2012. (V.K.Sharma) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/216 · issued 18 Sep 2012. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7578&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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