The Reserve Bank of India has published the Fourth Amendment Directions, 2026 updating CRR and SLR requirements for Small Finance Banks, easing regulations on fresh deposits.
Regulatory Changes in CRR and SLR for Small Finance Banks by RBI
On August 25, 2026, the Reserve Bank of India (RBI) released the Fourth Amendment Directions, 2026 affecting Small Finance Banks. This amendment revises the previous frameworks established on June 19, 2026 regarding Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
With the latest changes, the RBI has provided exemptions for CRR and SLR requirements concerning new FCNR(B) deposits, thereby enhancing the operational flexibility of Small Finance Banks. This change supports their objectives in attracting deposits while managing liquidity effectively.
For practitioners within the banking law domain, staying updated on these amendments is crucial for advising clients strategically on compliance and financial operations as these changes will impact deposit management practices.
Overall, being cognizant of these developments allows legal advisors to better equip their banking clients in navigating regulatory requirements and optimizing their financial strategies.
Citations
- RBI/2026-27/239 DOR.RET.REC.206/12.01.001/2026-27