The RBI has announced a third amendment to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for rural co-operative banks, targeting NRE term deposits.
RBI Amends CRR and SLR for Rural Co-operative Banks
The Reserve Bank of India (RBI) has published the third amendment to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) concerning rural co-operative banks on June 19, 2026. This amendment is part of a continuous effort to enhance the regulatory framework surrounding liquidity management.
The guidelines for handling fresh Non-Resident (External) Rupee (NRE) term deposits have been revised, which is significant for the operations of rural co-operative banks in managing their liquidity.
These changes are aimed at promoting financial stability in the rural banking sector and ensuring that these institutions can effectively meet the demands for credit and deposits.
Legal counsel for banking organizations should review these amendments closely to ensure compliance and assess their implications on liquidity management and operational effectiveness within rural co-operative banks.
Citations
- RBI Amendments (2026) RBI/2026-27/148
