Scheduled banks may now maintain 90% of required CRR daily, with fortnightly average compliance. The change enhances liquidity management flexibility while preserving overall reserve discipline.
RBI Modifies Daily CRR Compliance Requirement
The Reserve Bank of India, in a circular dated October 9, 2026, revised the daily minimum Cash Reserve Ratio (CRR) maintenance norm for scheduled banks. Banks are now permitted to maintain not less than 90% of the required statutory CRR on any given day during the fortnight, provided the average daily CRR over the reporting period meets or exceeds the stipulated rate.
Objective and Operational Impact
This adjustment aims to ease short-term liquidity pressures, particularly on days with high settlement volumes or systemic stress. It allows banks greater flexibility in treasury operations without compromising the central bank's monetary control. The modification maintains systemic stability while acknowledging practical challenges in intra-fortnight cash flow management.
Banking lawyers should advise clients on revising internal liquidity frameworks and monitoring systems to remain compliant with both daily minimum thresholds and fortnightly averages. The change is particularly relevant for institutions with volatile deposit bases.
Citations
- RBI/2026-27/290, October 9, 2026