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RBI Releases Fourth Amendment Directions on CRR and SLR for Rural Banks
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Reserve Bank of Indiabanking

RBI Releases Fourth Amendment Directions on CRR and SLR for Rural Banks

August 30, 2026

The RBI's Fourth Amendment Directions have adjusted regulations concerning the Cash Reserve Ratio and Statutory Liquidity Ratio for Rural Co-operative Banks, aimed at enhancing liquidity management.

Fourth Amendment on CRR and SLR for Rural Co-operative Banks

On August 25, 2026, the RBI issued Fourth Amendment Directions updating regulations regarding the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for Rural Co-operative Banks. This amendment builds upon earlier set Directions from November 2025.

This update provides exemptions from maintaining CRR and SLR for fresh Foreign Currency Non-Resident (B) deposits with a minimum tenor, thus enhancing liquidity availability for these banks. Such adjustments are vital for ensuring more robust financial management among Rural Co-operative Banks.

The changes in CRR and SLR regulations are expected to facilitate increased lending capacities, providing essential support to local economies.

It is important for practitioners to guide Rural Co-operative Banks concerning compliance with these amendments to optimize liquidity and enhance operational effectiveness.

Citations

  • RBI/2026-27/242 DOR.RET.REC.209/12.01.001/2026-27
Practice Areas:banking

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