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CRR Hiked by 50 bps to 4.50% from May 21, 2022

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No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2022-23/46 · issued 04 May 2022 · ~1 min read

Quick answerRBI raised CRR by 50 bps to 4.50% of NDTL, effective fortnight starting May 21, 2022. This tightens liquidity, reducing funds available for lending and increasing banks' cost of funds.

What changed

The CRR was increased from 4.00% to 4.50% of NDTL, a 50 bps hike. This change applies to all banks and takes effect from the reporting fortnight beginning May 21, 2022.

What it means for you

Banks must hold an additional 0.50% of their NDTL as reserves with RBI, draining liquidity from the system. This will compress net interest margins and reduce lendable resources, potentially slowing credit growth and raising lending rates.

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

Recalibrate liquidity buffers to meet the higher 4.50% CRR from May 21, 2022.
Review asset-liability management to absorb the impact on net interest margins.
Communicate revised lending rates to customers if pass-through is planned.
Monitor deposit mobilization to offset the reserve requirement increase.

Who it affects

All scheduled commercial banks, Treasury and ALM teams, Credit and lending departments, Deposit pricing teams

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 06:11 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

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

When does the new CRR take effect?

The 4.50% CRR applies from the reporting fortnight beginning May 21, 2022.

What is the basis for calculating CRR?

CRR is calculated as a percentage of Net Demand and Time Liabilities (NDTL).

Does this apply to all banks?

Yes, the circular is addressed to all banks and the notification covers every bank under the RBI Act and Banking Regulation Act.

📜 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 #241: DOR.RET.REC.34/12.01.001/2022-23 — "Notification on Maintenance of Cash Reserve Ratio (CRR)" dated May 4, 2022”

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

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 941 kb ) Maintenance of Cash Reserve Ratio (CRR) RBI/2022-23/46 DOR.RET.REC.33/12.01.001/2022-23 May 04, 2022 All Banks Madam/Sir, Maintenance of Cash Reserve Ratio (CRR) Please refer to our circular DOR.No.Ret.BC.35/12.01.001/2020-21 dated February 05, 2021 and relative notification on the captioned subject. 2. As announced in the Governor’s Statement dated May 04, 2022 , it has been decided to increase the Cash Reserve Ratio (CRR) of all banks by 50 basis points from 4.00 percent to 4.50 percent of their Net Demand and Time Liabilities (NDTL), effective from the reporting fortnight beginning May 21, 2022. 3. A copy of the relative notification DOR.RET.REC.34/12.01.001/2022-23 dated May 04, 2022 is enclosed . Yours faithfully, (Prakash Baliarsingh) Chief General Manager Encl. : As above DOR.RET.REC.34/12.01.001/2022-23 May 04, 2022 NOTIFICATION In exercise of the powers conferred under the sub-section (1) of Section 42 of the Reserve Bank Act, 1934 and sub-section (1) of Section 18 of the Banking Regulation Act, 1949 (10 of 1949) read with section 56 thereof, and in partial modification of the earlier notification DOR.No.Ret.BC.38/12.01.001/2020-21 dated February 05, 2021 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every bank shall be 4.50 per cent of its net demand and time liabilities effective from the reporting fortnight beginning May 21, 2022. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/46 · issued 04 May 2022. The plain-English explanation above is BankPulse’s own independent summary.

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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=12313&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.