The Reserve Bank of India has introduced changes to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) directions for urban co-operative banks, aiming to bolster liquidity management.
RBI Amends CRR for Urban Co-operative Banks
On June 19, 2026, the Reserve Bank of India released the third amendment to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) directions for urban co-operative banks. The amendments are intended to enhance the ability of these banks to manage their liquidity effectively.
Key revisions address the management of fresh Non-Resident (External) Rupee (NRE) term deposits, ensuring urban co-operative banks comply with statutory requirements while maintaining liquidity standards.
This proactive approach by the RBI signifies its commitment to supporting urban banking institutions in strengthening their operational frameworks and sustaining adequate liquidity for various financial activities.
Professionals in the banking sector should review these amendments to navigate the compliance requirements and optimize liquidity management strategies within urban co-operative banks.
Citations
- Reserve Bank of India CRR & SLR Directions (2026) RBI/2026-27/147
