The Reserve Bank of India has released third amendment directions for Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) applicable to Commercial Banks to strengthen liquidity management.
RBI Updates CRR and SLR Directions for Commercial Banks
The Reserve Bank of India (RBI) has issued the "Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio" Third Amendment Directions on June 19, 2026. This amendment addresses the need for improved liquidity measures within the commercial banking sector.
The revised guidelines clarify the conditions under which NRE term deposits will contribute to the calculations of CRR and SLR, enhancing the liquidity positions of commercial banks.
The directives underscore the importance of maintaining liquid assets to ensure operational efficiency and financial health, promoting stability in an evolving financial ecosystem.
The RBI seeks to strengthen the regulatory framework surrounding liquidity in the commercial banking domain.
Legal professionals should review these amendments carefully as they directly impact compliance obligations and operational strategies within commercial banks.
Citations
- RBI/2026-27/145 (2026)
