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CRR Cut for Urban Co-op Banks: 25 bps Reduction

Current · Source: Reserve Bank of India · RBI/2012-13/403 · issued 30 Jan 2013 · ~1 min read

Quick answerRBI reduced CRR for Scheduled Urban Co-operative Banks by 25 bps to 4.0% of NDTL, effective fortnight from Feb 9, 2013. This frees up liquidity for these banks.

The rule, in the simplest words

Urban co-operative banks will hold 4.0% of their net demand and time liabilities (NDTL) as cash reserve ratio (CRR).
This is a reduction of 25 basis points from the previous CRR of 4.25%.
The change takes effect from the fortnight beginning February 9, 2013.

How it plays out — a real example

Rahul, a co-operative bank branch officer in Indore, is happy to learn about the CRR reduction. He now has more funds available to lend to his customers, which means he can provide more gold loans and support the local economy. Rahul adjusts his reserve maintenance calculations accordingly and reviews his liquidity projections to utilize the freed-up funds effectively.

What changed

The Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative Banks was reduced from 4.25% to 4.0% of net demand and time liabilities (NDTL). This change takes effect from the fortnight beginning February 9, 2013, as per the notification dated January 30, 2013.

What it means for you

Urban co-operative banks will now need to hold less cash with RBI, releasing funds for lending or other operations. This 25 bps cut improves their liquidity position and may support credit growth. Banks should adjust their reserve maintenance calculations accordingly from the specified fortnight.

What you must do

Update CRR maintenance calculations to 4.0% of NDTL from Feb 9, 2013 fortnight.
Inform treasury and compliance teams about the revised CRR requirement.
Acknowledge receipt of this circular to the respective RBI Regional Office.
Review liquidity projections to utilize freed-up funds effectively.

Who it affects

Scheduled Primary (Urban) Co-operative Banks, Treasury departments of urban co-op banks, Compliance teams handling reserve requirements

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 16:19 IST
extended_by — Bank Rate Cut to 8.50% for Urban Co-op Banks

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

When does the new CRR rate take effect?

The reduced CRR of 4.0% applies from the fortnight beginning February 9, 2013.

What was the previous CRR for these banks?

The earlier CRR was 4.25% of NDTL, as per the October 30, 2012 circular.

Does this apply to all urban co-operative banks?

Yes, it applies to all Scheduled Primary (Urban) Co-operative Banks covered under Section 42(1) of the RBI Act.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Extended by Bank Rate Cut to 8.50% for Urban Co-op Banks

RBI’s words: “Please refer to our circular UBD.BPD.(PCB).Cir.No.35/16.11.00/2011-12 dated January 30, 2013 on the captioned subject.”

📜 Read the original circular — full text as issued by RBI

RBI/2012-13/403

 UBD.BPD. (SCB). CIR. No. 3 /12.03.000/2012-13

 January 30, 2013

 The Chief Executive Officers of

 All Scheduled Primary (Urban) Co-operative Banks

 Madam/Dear Sir,

 Section 42(1) of Reserve Bank of India Act, 1934 –

 Maintenance of Cash Reserve Ratio (CRR) 

 Please refer to our Circular UBD. BPD.(SCB).Cir.No.2/12.03.000/2012-13 dated October 30, 2012 on the captioned subject.

 2. As set out in the Reserve Bank’s Press Release 2012-2013/1267 dated January 29, 2013 , it has been decided to reduce the Cash Reserve Ratio (CRR) for Scheduled Primary (Urban) Co-operative Banks by 25 basis points from 4.25 per cent to 4.0 per cent of their net demand and time liabilities (NDTL), with effect from the fortnight beginning February 9, 2013.

 3. A copy of the relative notification UBD.BPD.(SCB).No.4 /12.03.000/2012-13 dated January 30, 2013 is enclosed.

 4. Please acknowledge the receipt to the Regional Office concerned.

 Yours faithfully,

 (A. Udgata)

 Chief General Manager-in-Charge

 Encl: 1

 UBD.BPD.(SCB). No. 4 /12.03.000/2012-13

 January 30, 2013

 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.BPD.(SCB).No.3/12.03.000/2012-13 dated October 30, 2012 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 4.0 per cent of its net demand and time liabilities, from the fortnight beginning February 9, 2013.

 ( S. Karuppasamy )

 Executive Director

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/403 · issued 30 Jan 2013. The plain-English explanation above is BankPulse’s own independent summary.

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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 urban co-op banks, Compliance teams handling reserve requirements), your first concrete step on “CRR Cut for Urban Co-op Banks: 25 bps Reduction” is: “Update CRR maintenance calculations to 4.0% of NDTL from Feb 9, 2013 fortnight.” (RBI issued this 30 Jan 2013).

Circular: RBI/2012-13/403 -- CRR Cut for Urban Co-op Banks: 25 bps Reduction
Issued: 30 Jan 2013
Action required: Update CRR maintenance calculations to 4.0% of NDTL from Feb 9, 2013 fortnight.
Action required: Inform treasury and compliance teams about the revised CRR requirement.
Action required: Acknowledge receipt of this circular to the respective RBI Regional Office.
Action required: Review liquidity projections to utilize freed-up funds effectively.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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.

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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=7839&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.