CRR Daily Minimum Maintenance Reduced to 95% for UCBs
Current · Source: Reserve Bank of India · RBI/2013-14/284 · issued 20 Sep 2013 · ~1 min read
Quick answerRBI reduced the daily minimum CRR maintenance requirement for Scheduled Primary Urban Co-operative Banks from 99% to 95%, effective from the fortnight starting September 21, 2013. This eases daily liquidity management for UCBs.
The rule, in the simplest words
Banks must keep a certain amount of money with the RBI (Reserve Bank of India) every day, called CRR (Cash Reserve Ratio).
Before this rule, banks had to keep at least 99% of that required amount each day.
Now, banks only need to keep 95% of that required amount each day, starting from the two-week period that began on September 21, 2013.
This gives banks more freedom to use their cash during the day without getting a penalty for having too little at the end of the day.
How it plays out — a real example
A co-operative bank branch officer in Indore at a Scheduled Primary Urban Co-operative Bank used to worry every day about keeping 99% of the CRR (the cash reserve with RBI) in the bank's account. Now, with the new rule, she only needs to keep 95% daily, so she can lend out a bit more cash to customers during the day and still avoid penalties at the end of the day.
What changed
The minimum daily maintenance of CRR was reduced from 99% to 95% of the required CRR balance, effective from the fortnight beginning September 21, 2013. This change applies to all Scheduled Primary (Urban) Co-operative Banks under Section 42(1) of the RBI Act, 1934.
What it means for you
UCBs now have more flexibility in managing daily cash reserves, as they need to maintain only 95% of the CRR requirement on a daily basis instead of 99%. This reduces the risk of penal charges for intra-fortnight shortfalls and improves liquidity management.
What you must do
Update your treasury systems to reflect the new 95% daily minimum CRR maintenance threshold.
Inform your ALCO and treasury teams about the reduced daily maintenance requirement effective September 21, 2013.
Review your CRR compliance processes to ensure smooth transition from the earlier 99% norm.
Who it affects
Scheduled Primary (Urban) Co-operative Banks, Treasury and ALCO teams of UCBs, Compliance departments of UCBs
❓ Common questions
What is the effective date for this CRR daily maintenance change?
The reduced minimum daily maintenance of 95% is effective from the fortnight beginning September 21, 2013.
Does this circular 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, 1934.
What was the previous daily minimum CRR maintenance requirement?
The previous requirement was 99% of the required CRR balance, as per the circular dated July 24, 2013.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/284
UBD.BPD. (SCB). CIR. No. 2/12.03.000/2013-14
September 20, 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 – Change in
Daily Minimum Cash Reserve Maintenance Requirement
Please refer to our circular No.UBD.BPD. (SCB).CIR.No.1/12.03.000/2013-14 dated July 24, 2013 on the captioned subject.
2. As announced in the Press Release 2013-14/604 dated September 20, 2013 , It has been decided to reduce the minimum daily maintenance of the cash reserve ratio (CRR) from 99 per cent to 95 per cent effective from the fortnight beginning September 21, 2013.
Yours faithfully,
(A.K.Bera)
Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/284 · issued 20 Sep 2013. The plain-English explanation above is BankPulse’s own independent summary.
Update your treasury systems to reflect the new 95% daily minimum CRR maintenance threshold.
📜 Compliance
Inform your ALCO and treasury teams about the reduced daily maintenance requirement effective September 21, 2013.
Review your CRR compliance processes to ensure smooth transition from the earlier 99% norm.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (Scheduled Primary (Urban) Co-operative Banks, Treasury and ALCO teams of UCBs, Compliance departments of UCBs), your first concrete step on “CRR Daily Minimum Maintenance Reduced to 95% for UCBs” is: “Update your treasury systems to reflect the new 95% daily minimum CRR maintenance threshold.” (RBI issued this 20 Sep 2013).
Circular: RBI/2013-14/284 -- CRR Daily Minimum Maintenance Reduced to 95% for UCBs
Issued: 20 Sep 2013
Action required: Update your treasury systems to reflect the new 95% daily minimum CRR maintenance threshold.
Action required: Inform your ALCO and treasury teams about the reduced daily maintenance requirement effective September 21, 2013.
Action required: Review your CRR compliance processes to ensure smooth transition from the earlier 99% norm.
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.
💬 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.
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=8447&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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