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Cash Reserve Ratio(CRR) RBI: Present & Historical Data (1998-2016)

Cash reserve ratio means the cash parked by the banks in their specified current account maintained with RBI. CRR is the short form of "Cash reserve ratio".

CRR: In terms of Section 42(1) of the RBI Act, 1934 the Reserve Bank, having regard to the needs of securing the monetary stability in the country, prescribes the CRR for Scheduled Commercial Banks(SCBs) without any floor or ceiling rate.

Maintenance of CRR: At present, effective from the fortnight beginning February 09, 2013, the CRR is prescribed at 4.00 per cent of a bank's total of DTL adjusted for the exemptions discussed in point (1) and (2) below.

(1) Liabilities not to be included for DTL/NDTL computation

The under-noted liabilities will not form part of liabilities for the purpose of CRR:

a) Paid up capital, reserves, any credit balance in the Profit & Loss Account of the bank, amount of any loan taken from the RBI and the amount of refinance taken from Exim Bank, NHB, NABARD, SIDBI;

b) Net income tax provision;
c) Amount received from DICGC towards claims and held by banks pending adjustments thereof;
d) Amount received from ECGC by invoking the guarantee;
e) Amount received from insurance company on ad-hoc settlement of claims pending judgement of the Court;
f) Amount received from the Court Receiver;
g) The liabilities arising on account of utilization of limits under Bankers’ Acceptance Facility (BAF);
h) District Rural Development Agency (DRDA) subsidy of Rs. 10,000/- kept in Subsidy Reserve Fund account in the name of Self Help Groups;
i) Subsidy released by NABARD under Investment Subsidy Scheme for Construction/Renovation /Expansion of Rural Godowns;
j) Net unrealized gain/loss arising from derivatives transaction under trading portfolio;
k) Income flows received in advance such as annual fees and other charges which are not refundable;
l) Bill rediscounted by a bank with eligible financial institutions as approved by RBI


(2) Exempted Categories

SCBs are exempted from maintaining CRR on the following liabilities:

i. Liabilities to the banking system in India as computed under clause (d) of the explanation to Section 42(1) of the RBI Act, 1934;
ii. Credit balances in ACU (US$) Accounts; and
iii. Demand and Time Liabilities in respect of their Offshore Banking Units (OBU).
iv. The eligible amount of incremental FCNR (B) and NRE deposits of maturities of three years and above from the base date of July 26, 2013, and outstanding as on March 7, 2014, till their maturities/pre-mature withdrawals, and
v. Minimum of Eligible Credit (EC) and outstanding Long term Bonds (LB) to finance Infrastructure Loans and affordable housing loans, as per the circular DBOD.BP.BC.No.25/08.12.014/2014-15 dated July 15, 2014 extant instructions

Incremental CRR: In terms of Section 42(1A) of RBI Act, 1934, the SCBs are required to maintain, in addition to the balances prescribed under Section 42(1) of the Act, an additional average daily balance, the amount of which shall not be less than the rate specified by the Reserve Bank in the notification published in the Gazette of India from time to time. Such additional balance will be calculated with reference to the excess of the total of DTL of the bank as shown in the Returns referred to in Section 42(2) of the RBI Act, 1934 over the total of its DTL at the close of the business on the date specified in the notification. At present no incremental CRR is required to be maintained by the banks.

Present Cash Reserve Ratio(CRR) - Weekly

Latest CRR can be checked from the RBI site at this link, :

*Cash Reserve Ratio(CRR) as on 30th September 2016 was 4.00 per cent.*


Historical Cash Reserve Ratio(CRR)

Date

CRR

March 31, 1998

10.00%

March 31, 1999

8.00%

March 31, 2000

9.00%

March 31, 2001

8.00%

March 31, 2002

5.50%

March 31, 2003

4.75%

March 31, 2004

4.50%

March 31, 2005

5.00%

March 31, 2006

5.00%

March 31, 2007

6.00%

March 31, 2008

7.50%

March 31, 2009

5.00%

March 31, 2010

5.75%

March 31, 2011

6.00%

March 31, 2012

4.75%

March 31, 2013

4.00%

March 31, 2014

4.00%

March 31, 2015

4.00%

March 31, 2016

4.00%



Computation of DTL - Demand and Time Liabilities

For guidelines on computation of DTL - read more at:


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