The Reserve Bank of India has announced the third amendment to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) directions for small finance banks to enhance liquidity.
RBI Announces CRR Amendments for Small Finance Banks
On June 19, 2026, the Reserve Bank of India issued the third amendment to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) directions for small finance banks. This amendment is part of the RBI's ongoing efforts to bolster liquidity management within the banking sector.
The updated directions focus on guidelines pertaining to the handling of fresh Non-Resident (External) Rupee (NRE) term deposits, allowing small finance banks to strengthen their liquidity position in compliance with regulatory norms.
These amendments reflect the RBI's strategic approach to enhance the financial stability of banks serving a critical role in serving small borrowers and promoting financial inclusion.
Banking professionals and legal practitioners should remain aware of these amendments to ensure adherence to the revised guidelines and to effectively manage compliance within small finance banks.
Citations
- Reserve Bank of India CRR & SLR Directions (2026) RBI/2026-27/146
