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RBI Eases CRR Maintenance for Scheduled Banks
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Reserve Bank of Indiabankingfinancial_regulation

RBI Eases CRR Maintenance for Scheduled Banks

October 13, 2026

The RBI has revised the daily Cash Reserve Ratio (CRR) maintenance norms, allowing banks to maintain 90% minimum daily CRR while ensuring fortnightly average compliance.

RBI Relaxes Daily CRR Requirement

In a circular dated October 9, 2026 (RBI/2026-27/290), the RBI modified the CRR maintenance framework under Section 42(1) of the Reserve Bank of India Act, 1934. Scheduled banks are now permitted to maintain not less than 90% of the required CRR on any day during a reporting fortnight, provided the average daily CRR over the fortnight meets the statutory requirement.

This operational flexibility is designed to ease liquidity management for banks, reducing the penalty risk due to intraday volatility. The change aligns with global central banking practices that emphasize average reserve compliance over rigid daily thresholds.

Legal teams must ensure internal treasury systems are updated to reflect staggered monitoring protocols. Compliance remains enforceable under Section 42(7) of the RBI Act, with penalties for failure to meet fortnightly averages.

Citations

  • Reserve Bank of India Act, 1934
Practice Areas:bankingfinancial_regulation

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