The Reserve Bank of India has amended the regulatory framework for Cash Reserve Ratio and Statutory Liquidity Ratio for Rural Co-operative Banks following the introduction of new deposit guidelines.
RBI Issues Fourth Amendment Directions on CRR and SLR for Rural Co-operative Banks
On August 25, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026. This amendment aligns with the recently updated guidelines concerning interest rates on deposits.
This amendment provides for exemptions from the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) maintenance for fresh FCNR(B) deposits with minimum tenors. Such measures are part of the enhanced regulatory framework aimed at improving liquidity positions of rural co-operative banks.
Professionals in financial law should be aware of these updates, as they may provide advantageous conditions for rural co-operative banks, compelling them to revise their liquidity management strategies in accordance with these guidelines.
Citations
- Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026