The Reserve Bank of India has introduced third amendment directions aimed at Cash Reserve Ratio and Statutory Liquidity Ratio for Small Finance Banks, enhancing liquidity norms.
Third Amendment Directions on Cash Reserve Ratio for Small Finance Banks
The Reserve Bank of India released the third amendment directions concerning the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for Small Finance Banks on June 19, 2026. These regulations are part of the RBI's ongoing efforts to ensure sound liquidity management in the banking sector.
The updated directives aim to bolster the compliance regime and establish more stringent liquidity norms for Small Finance Banks, which play a significant role in expanding access to financial services for underserved populations.
Legal professionals should consider these amendments when advising Small Finance Banks to ensure adherence to the new liquidity strategies set forth by the RBI.
Citations
- Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
