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RBI Issues Fourth Amendment Directions on CRR and SLR for Urban Co-operative Banks
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RBI Issues Fourth Amendment Directions on CRR and SLR for Urban Co-operative Banks

September 1, 2026

The Reserve Bank of India has amended the CRR and SLR regulations for Urban Co-operative Banks, allowing exemptions for fresh deposits.

RBI Issues Fourth Amendment Directions on CRR and SLR for Urban Co-operative Banks

On August 25, 2026, the Reserve Bank of India (RBI) announced the Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026. These amendments are correlated with the recent changes in interest rate regulations for deposits.

The latest directions provide exemptions from the requirement of maintaining the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for fresh FCNR(B) deposits. This initiative is designed to optimize liquidity for urban co-operative banks amid evolving financial regulations.

Legal practitioners should advise urban co-operative banks to leverage these changes effectively, as they may enhance financial stability and operational capacity when managing fresh deposits.

Citations

  • Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026
Practice Areas:banking

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