Home › Circulars › RBI/2012-13/406

CRR cut for StCBs/RRBs: 25 bps reduction to 4.00%

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/406 · issued 29 Jan 2013 · ~1 min read
Quick answerRBI reduced CRR for Scheduled State Co-operative Banks and Regional Rural Banks by 25 bps from 4.25% to 4.00% of NDTL, effective fortnight from February 9, 2013. This frees up liquidity for these banks.
The rule, in the simplest words
How it plays out — a real example

A co-operative bank branch officer in Indore reviews the change: with CRR down from 4.25% to 4.00%, his bank must park less cash with RBI. The freed-up funds let the branch sanction more crop loans this season and quote slightly better rates than before.

What changed

The Cash Reserve Ratio for Scheduled State Co-operative Banks and Regional Rural Banks was reduced by 25 basis points, from 4.25% to 4.00% of their Net Demand and Time Liabilities. The change takes effect from the fortnight beginning February 9, 2013.

What it means for you

This CRR cut releases additional funds for StCBs and RRBs, improving their liquidity position. Banks can deploy these freed resources for lending or other investments, potentially supporting rural credit growth. The move aligns with RBI's broader monetary easing stance.

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, Treasury and compliance departments of these banks

❓ Common questions

Regulatory timeline

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?

The reduced CRR of 4.00% applies from the fortnight beginning February 9, 2013.

What was the previous CRR rate for StCBs and RRBs?

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

Does this circular apply to all co-operative banks?

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

📜 Read the original circular — full text as issued by RBI
RBI/2012-13/406 RPCD.CO.RCB.RRB.BC.No. 61/03.05.33/2012-13 January 29, 2013 All Scheduled State Co-operative Banks / Regional Rural Banks Dear Sir, Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of CRR Please refer to our Circular RPCD.CO.RCB.RRB.BC.No.39/03.05.33/2012-13 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) of Scheduled State Co-operative Banks / Regional Rural Banks, by 25 basis points, from 4.25 per cent to 4.00 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 RPCD.CO.RCB.RRB.BC.No.60/ 03.05.33/2012-13 dated January 29, 2013, 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. 60/03.05.33/2012-13 January 29, 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 RPCD.CO.RCB.RRB.BC.No.38/03.05.33/2012-13 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 State Co-operative Bank / Regional Rural Bank shall be 4.00 per cent of its net demand and time liabilities from the fortnight beginning February 9, 2013. Dr. (Smt.) Deepali Pant Joshi Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/406 · issued 29 Jan 2013. The plain-English explanation above is BankPulse’s own independent summary.
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