Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025

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. Start date

This rule takes effect immediately.

4. Who is covered

This rule applies to commercial banks, called 'banks' here.

5. Meaning of Commercial Banks

Commercial Banks means banks other than Small Finance Banks, Local Area Banks, and Payments Banks.

6. Half year average used

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

1. Last CRR step

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

2. Ninety per cent daily

A scheduled bank must keep at least 90 per cent of the required CRR on every day.

3. Use the FBIL rate

Foreign assets and liabilities must be converted using the rate announced by FBIL.

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. Borrowing abroad counts

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

6. What is left out

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

1. 18 percent SLR floor

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

2. Two per cent shortfall

An SLR shortfall of up to two per cent of NDTL needs no specific waiver.

3. Standing facility not for CRR

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

4. Hold securities in ledger

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

5. Marginal Standing Facility

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

6. Government repo exempt

Funds borrowed under repo in government securities are outside CRR and SLR computation.

7. Repo in bonds counts

Borrowing through repo in corporate bonds and debentures counts as a liability for CRR and SLR.

8. Standing facility counts for SLR

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

9. 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 cancelled

This document cancels the earlier conduct rules for these institutions.

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.