Reserve Bank of India (Payments Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on January 22, 2026)

1. Form A reporting

Banks must report their CRR to RBI using the statutory return Form A.

2. Form VIII reporting

Banks must report their SLR to RBI using the statutory return Form VIII.

3. Split the savings account

The bank must split every savings account between a demand liability and a time liability.

4. Start date

This rule takes effect immediately.

5. What aggregate deposits mean

Aggregate deposits mean demand deposits and time deposits added together.

6. Half year average used

The average of minimum monthly balances over the half year is treated as time liability.

7. What counts as SLR

The listed securities count as approved securities, known to bankers as SLR securities.

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.

1. Last CRR step

The last CRR step took effect from the fortnight beginning November 29, 2025.

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. 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.

4. RBI may name a liability

The Reserve Bank may specify that a transaction or class of transactions is a liability in India.

5. Borrowing abroad counts

Loans and borrowings from abroad count as liabilities to others and attract reserve requirements.

6. Upper Tier II counts

Upper Tier II instruments raised in India or abroad count as a liability when computing NDTL.

7. Unpaid drafts count

The unpaid balance of drafts issued under the remittance facilities scheme counts as a liability.

8. Correspondent bank money

Money received by a correspondent bank counts as a liability to the banking system.

9. Draft money is an asset

Sums placed for issuing drafts, interest or dividend warrants are assets with the banking system.

10. What is left out

Paid up capital, reserves and certain borrowings are not liabilities for CRR and SLR.

11. Share money held apart

Money collected by branches for a share issue, held pending allotment, is treated separately.

1. 18 percent SLR floor

SLR must stay at least 18% of a bank's total demand and time liabilities every day.

2. Standing facility not for CRR

Standing deposit facility balances cannot be counted towards the cash reserve ratio.

3. Hold securities in ledger

Government securities must be held only in SGL accounts with the Reserve Bank or in CSGL accounts.

4. Marginal Standing Facility

Banks can borrow up to 2% of their NDTL under the Marginal Standing Facility.

5. Standing facility counts for SLR

Balances kept with the Reserve Bank under the standing deposit facility qualify as SLR assets.

6. Cash management bill qualifies

A cash management bill is treated as a treasury bill and counts as an SLR security.

1. Value securities by rule

Approved securities must be classified and valued under the investment directions.

1. New filing dates set

Fortnightly Form A filing starts December 15, 2025 and monthly Form VIII from December 2025.

2. Old form for December

Banks must also file the Form A return for December 12, 2025 under the old structure.

3. Full CRR in transition

During the transition period banks must keep the whole of the required CRR.

4. Daily SLR statement filed

A scheduled bank must file a daily position of SLR assets as an annex to Form VIII.

5. No special Form A

There is no longer any provisional, final or special Form A return.

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.

4. Continued-shortfall penalty

If a bank's CRR shortfall continues to the next day, penal interest rises to 5% above the Bank Rate.

5. Licence cancellation risk

RBI can cancel a bank's licence if it keeps defaulting on SLR despite warnings.

1. Older rules repealed

This document repeals RBI's earlier instructions on the cash reserve ratio and statutory liquidity ratio for payments banks.

2. Earlier repeals stand

Guidelines already repealed before these Directions stay repealed.

3. Old rules stay repealed

Rules repealed before this document was issued remain repealed.

4. Old actions preserved

Anything already done under the old rules stays governed by those old rules.

5. Approvals carried over

Approvals given under the cancelled rules are now treated as given under these rules.

6. Other laws still apply

These Directions add to other laws. They do not replace any of them.

7. RBI's reading final

RBI's interpretation of any part of these Directions is final and binding.