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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues RBI (Local Area Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026

11-Sep-2026 | RBI/2026-27/255 DOR.RET.REC.220/12.01.001/2026-27

RBI has issued the RBI (Local Area Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026. Key Highlights: 1. Para 7A has been inserted, which states that the Reserve Bank may require the scheduled banks to maintain, in addition to the balances prescribed under Section 42(1) of the Act, an additional average daily balance, the amount of which shall not be less than the rate specified by the Reserve Bank. 2. Para 8A and 8B have been inserted to state: Every scheduled bank shall maintain in India with the Reserve Bank an average daily balance, the amount of which shall not be less than 3.75 per cent, 3.5 per cent, 3.25 per cent and 3.0 per cent of its net demand and time liabilities, and every scheduled bank shall maintain minimum CRR of not less than 90 per cent of the required CRR on all days. 3. Para 15A has been inserted to state that the calculation of the proportion of demand liabilities and time liabilities by scheduled banks in respect of their savings bank deposits based on the position as at the close of business on 30th September and 31st March every year shall continue with interest application on savings bank deposits on a daily product basis. 4. Para 37 has been substituted, which states that every bank is liable to pay to the Reserve Bank penal interest if the daily balance of cash reserve (CRR) held by the bank during any fortnight is below the minimum prescribed by or under these Directions. Kindly refer to the attached document for more information.

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Corporate Laws

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