Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on June 19, 2026)
UR
- Applies toRural co-operative banks
- StatusIn force
- RBI text changedRBI updated this document on October 09, 2026. BankPulse is re-reading it. BankPulse checked 37 points against RBI's new text on 18 October 2026. 34 stand. 3 are marked below and are being re-read.
- IssuedNov 28, 2025
- Last amendedAug 25, 2026 · 5 incorporated
- Length37 points in 5 sections · 4 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNov 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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What it says
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Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Chapter I. Preliminary
Must know
1. Form A reporting
Banks must report their CRR to RBI using the statutory return Form A.
Do it
2. Split the savings account
The bank must split every savings account between a demand liability and a time liability.
Background
3. Start date
This rule takes effect immediately.
4. What aggregate deposits mean
Aggregate deposits mean demand deposits and time deposits added together.
5. Half year average used
The average of minimum monthly balances over the half year is treated as time liability.
6. What counts as SLR
The listed securities count as approved securities, known to bankers as SLR securities.
7. Some pledged stock still counts
Certain SLR securities are not treated as encumbered, so they still qualify as SLR assets.
8. Outside money at call
Money at call and short notice from outside the banking system is shown as a liability to others.
9. Count pledged securities too
Investment in India covers both encumbered and unencumbered securities in the bank's investment book.
Chapter II. Cash Reserve Ratio (CRR)
Must know
1. Last CRR step
The last CRR step took effect from the fortnight beginning November 29, 2025.
Do it
2. Ask RBI when unsure
Where it is unclear whether a transaction is a liability in India, the bank must approach the Reserve Bank.
3. Use the FBIL rate
Foreign assets and liabilities must be converted using the rate announced by FBIL.
Background
4. Final CRR rate
CRR reached its final rate of 3.0% of NDTL in four steps by late November 2025.
BankPulse example. Suppose a bank has net demand and time liabilities of ₹10,000 crore. It must keep 3.0 per cent of that with RBI, which is ₹300 crore. At the first step of 3.75 per cent it would have kept ₹375 crore.
5. RBI may name a liability
The Reserve Bank may specify that a transaction or class of transactions is a liability in India.
6. Borrowing abroad counts
Loans and borrowings from abroad count as liabilities to others and attract reserve requirements.
7. Upper Tier II counts
Upper Tier II instruments raised in India or abroad count as a liability when computing NDTL.
8. Unpaid drafts count
The unpaid balance of drafts issued under the remittance facilities scheme counts as a liability.
9. Correspondent bank money
Money received by a correspondent bank counts as a liability to the banking system.
10. Draft money is an asset
Sums placed for issuing drafts, interest or dividend warrants are assets with the banking system.
11. What is left out
Paid up capital, reserves and certain borrowings are not liabilities for CRR and SLR.
12. Share money held apart
Money collected by branches for a share issue, held pending allotment, is treated separately.
13. Foreign currency loans count
Loans out of FCNR (B) and inter-bank foreign currency deposits count as part of bank credit.
Chapter III. Statutory Liquidity Ratio (SLR)
1. Standing facility not for CRR
Standing deposit facility balances cannot be counted towards the cash reserve ratio.
2. Hold securities in ledger
Government securities must be held only in SGL accounts with the Reserve Bank or in CSGL accounts.
3. Marginal Standing Facility
Banks can borrow up to 2% of their NDTL under the Marginal Standing Facility.
4. Standing facility counts for SLR
Balances kept with the Reserve Bank under the standing deposit facility qualify as SLR assets.
5. Cash management bill qualifies
A cash management bill is treated as a treasury bill and counts as an SLR security.
Chapter IV. Procedure for computation of SLR
1. Value securities by rule
Approved securities must be classified and valued under the investment directions.
Chapter V. Reporting
1. Full CRR in transition
During the transition period banks must keep the whole of the required CRR.
Chapter VI. Penalties
1. Director fines
A bank director who knowingly lets a CRR default continue can be fined up to ₹500 per fortnight.
BankPulse example. Suppose the default runs for four fortnights after the first. The first fine may be up to ₹500. A further ₹500 may be added for each of those four fortnights, which is ₹2,000 more.
2. Late return draws penalty
Failure to submit the return, or late submission, attracts penalties under the RBI Act.
3. Explain every CRR default
A bank must report the date, amount, percentage and reason for any CRR default.
Chapter VII. Repeal and Other Provisions
1. Older rules repealed
This document repeals RBI's earlier instructions on the cash reserve ratio and statutory liquidity ratio for rural co-operative banks.
2. Old actions preserved
Anything already done under the old rules stays governed by those old rules.
3. Approvals carried over
Approvals given under the cancelled rules are now treated as given under these rules.
4. Other laws still apply
These Directions add to other laws. They do not replace any of them.
5. RBI's reading final
RBI's interpretation of any part of these Directions is final and binding.
How this rule has changed
The points above are the rule as it stands today, after every change listed here.
Issued on Nov 28, 2025. This is the date RBI put the rule out.
Changed on Dec 11, 2025. Takes effect From December 15, 2025. Exceptions and conditions are stated in the amendment..
- Effective dates. All rules start from December 15, 2025, except one clause from December 12, 2025.
- Single Form B return. Banks must file only one Form B return, not provisional, final or special versions.
- Form B on CIMS. Banks must file the new Form B using the Centralised Information Management System portal.
- Form I on CIMS. Banks must file the new Form I using the Centralised Information Management System portal.
Changed on Jan 22, 2026.
- Immediate effect. Banks must follow these amended rules from the date of this circular.
- Core amendment. These rules change the 2025 directions on cash reserve ratio and statutory liquidity ratio for rural co-operative banks.
- Para 28(4)(v) cash. Banks must no longer show the item under the head Cash in hand in paragraph 28(4)(v).
- Form B item 2 change. Banks must delete Industrial Development Bank of India and add the new institutions in item 2 before Form B footnotes.
Changed on Jun 08, 2026.
- Immediate effect. These amended rules start working at once from the issue date.
- Exemption limited to principal. CRR exemption applies only to the original FCNR(B) deposit amount while it remains in the bank's books.
- Cross reference update. Paragraph 29(4) will now refer also to paragraph 21(5).
Changed on Jun 19, 2026.
- Immediate effect. All rules in this amendment apply from the date of issue, without any delay.
- Original amount only. CRR exemption is allowed only on the original NRE deposit amount and only while the deposit remains with the bank.
- NRO to NRE not eligible. If money is moved from NRO to NRE account, that NRE balance will not get this reserve exemption.
- Cross reference updated. Paragraph 29(4) is updated so that it now also refers to paragraph 21(6).
Changed on Aug 25, 2026.
- Immediate effect. These new rules apply from the date of this circular itself.
- What is amended. These directions change the 2025 rural co-operative bank CRR and SLR directions.
- New end date FCNRB. For foreign currency non resident deposits, exemption now applies only till August 31, 2026.
- New end date NRE. For non resident external term deposits, exemption now applies only till August 31, 2026.
The same subject for other kinds of institution
The same subject for other kinds of institution.
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