RBI has revised the daily minimum Cash Reserve Ratio (CRR) maintenance requirement, allowing scheduled banks to maintain not less than 90% of the mandated CRR on each day, provided the fortnightly average meets the stipulated level.
RBI Amends CRR Daily Maintenance Norms
The Reserve Bank of India (RBI), on October 9, 2026, issued revised instructions regarding the daily minimum Cash Reserve Ratio (CRR) maintenance requirement under Section 42(1) of the RBI Act, 1934. Scheduled banks are now permitted to maintain a daily CRR of not less than 90 percent of the required amount during the fortnight, ensuring that the average daily maintenance over the reporting fortnight is at least equal to the stipulated CRR.
This modification offers banks greater liquidity management flexibility by reducing daily compliance rigidity, while preserving the overall reserve requirement. The RBI reiterated that the average daily balance maintained must meet or exceed the prescribed CRR for the fortnight, with penalties continuing to apply for any shortfall in the average.
Implication for Practitioners: Bank compliance and treasury teams must update internal monitoring systems to reflect the 90% daily floor while ensuring fortnightly averages remain compliant. Legal advisors should review intra-fortnight liquidity strategies in light of the relaxed daily norms.
Citations
- Section 42(1), Reserve Bank of India Act, 1934