Home › Circulars › RBI/2023-24/59

RBI phases out incremental CRR in three tranches

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2023-24/59 · issued 08 Sep 2023 · ~2 min read

Quick answerRBI will release the incremental CRR (I-CRR) impounded since August 10, 2023 in three stages starting September 9, 2023, to avoid liquidity shocks. 25% released on Sep 9, another 25% on Sep 23, and the remaining 50% on Oct 7, 2023.

What changed

RBI has decided to discontinue the incremental CRR (I-CRR) that was imposed on August 10, 2023. The impounded amounts will be released in a phased manner: 25% on September 9, 2023, another 25% on September 23, 2023, and the remaining 50% on October 7, 2023. The corresponding additional CRR maintenance requirements for the fortnights are reduced accordingly.

What it means for you

Banks will gradually get back the liquidity that was locked up under I-CRR, easing pressure on their cash reserves. This phased release aims to prevent sudden liquidity surges that could disrupt money markets. For lenders, this means improved ability to deploy funds for lending or investments over the next month.

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

Update your liquidity management plans to account for the phased release of I-CRR funds on the specified dates.
Ensure your treasury team adjusts daily reserve calculations for the fortnights ending September 22 and October 6, 2023 as per the reduced additional CRR percentages.
Monitor money market conditions closely to deploy the released liquidity optimally without causing rate volatility.

Who it affects

Scheduled Commercial Banks, Regional Rural Banks, Scheduled Primary (Urban) Co-operative Banks, Scheduled State Co-operative Banks

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 04:25 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Status change: withdrawn 03 Aug 2026, 04:00 IST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).

What is the exact schedule for I-CRR release?

25% of the I-CRR maintained will be released on September 9, 2023, another 25% on September 23, 2023, and the remaining 50% on October 7, 2023.

Do we still need to maintain any additional CRR after October 7?

No, from October 7, 2023 onwards, the additional average daily balance required under I-CRR becomes nil, meaning the requirement is fully discontinued.

Which banks are covered by this circular?

All Scheduled Commercial Banks, Regional Rural Banks, Scheduled Primary (Urban) Co-operative Banks, and Scheduled State Co-operative Banks are covered.

📜 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 #165: DOR.RET.REC.34/12.01.001/2023-24 — "Reserve Bank of India Act, 1934 - Section 42(1A) - Requirement for Maintaining Additional CRR" dated September 8, 2023”

📜 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 ( 832 kb ) Reserve Bank of India Act, 1934 - Section 42(1A)- Requirement for maintaining additional CRR RBI/2023-24/59 DOR.RET.REC.34/12.01.001/2023-24 September 08, 2023 The Chairperson / CEOs of all Scheduled Commercial Banks / Regional Rural Banks / All Scheduled Primary (Urban) Co-operative Banks / All Scheduled State Co-operative Banks Madam / Dear Sir, Reserve Bank of India Act, 1934 - Section 42(1A) - Requirement for maintaining additional CRR Please refer to the circular DOR.RET.REC.29/12.01.001/2023-24 dated August 10, 2023 and relative notification on the captioned subject. 2. As announced in the RBI Press Release dated September 08, 2023 , on a review, it has been decided to discontinue the incremental CRR (I-CRR) in a phased manner. Based on an assessment of current and evolving liquidity conditions, it has been decided that the amounts impounded under the I-CRR would be released in stages so that system liquidity is not subjected to sudden shocks and money markets function in an orderly manner. The release of funds would be as follows: Date Amount to be released September 09, 2023 25 per cent of the I-CRR maintained September 23, 2023 25 per cent of the I-CRR maintained October 07, 2023 50 per cent of the I-CRR maintained 3. A copy of the relative notification DOR.RET.REC.35/12.01.001/2023-24 dated September 08, 2023 is enclosed . Yours faithfully, (Brij Raj) Chief General Manager DOR.RET.REC.35/12.01.001/2023-24 September 08, 2023 NOTIFICATION In exercise of the powers conferred by sub-section (1A) of Section 42 of the Reserve Bank of India Act, 1934 and in modification of the earlier notification DOR.RET.REC.30/12.01.001/2023-24 dated August 10, 2023 , the Reserve Bank of India hereby directs that all Scheduled Commercial Banks / Regional Rural Banks / all Scheduled Primary (Urban) Co-operative Banks / all Scheduled State Co-operative Banks, shall maintain with the Reserve Bank of India, an additional average daily balance over and above the average daily balance required to be maintained under sub-section (1) of Section 42 during the following fortnights as under: During the fortnight Amount to be maintained September 09-22, 2023 an additional average daily balance which shall not be less than 7.5 per cent of the increase in net demand and time liabilities between May 19, 2023 and July 28, 2023 September 23, 2023 - October 06, 2023 an additional average daily balance which shall not be less than 5.0 per cent of the increase in net demand and time liabilities between May 19, 2023 and July 28, 2023 From October 07, 2023 Nil (Jayant Kumar Dash) Executive Director 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/59 · issued 08 Sep 2023. 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=12533&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.