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RBI Issues Fourth Amendment Directions on CRR and SLR for Small Finance Banks
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RBI Issues Fourth Amendment Directions on CRR and SLR for Small Finance Banks

September 1, 2026

The Reserve Bank of India has amended the CRR and SLR regulations for Small Finance Banks, allowing exemptions connected to new deposit guidelines.

RBI Issues Fourth Amendment Directions on CRR and SLR for Small Finance Banks

On August 25, 2026, the Reserve Bank of India (RBI) released the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026. This amendment modifies previous regulations to keep pace with updates in interest rate directives.

The update includes exemptions from maintaining the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for specified new FCNR(B) deposits. This initiative is part of a broader focus on enhancing liquidity management within small finance banks.

Legal advisors in the banking sector should ensure that small finance banks are prepared to adapt their operational strategies in light of these changes, as this could provide a significant opportunity for strengthening their liquidity positions.

Citations

  • Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026
Practice Areas:banking

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