RBI Updates Fourth Amendment on Cash Reserve Ratio for Urban Co-operative Banks

Regulatory Changes on CRR and SLR for Urban Co-operative Banks by RBI

On August 25, 2026, the Reserve Bank of India (RBI) announced the Fourth Amendment Directions, 2026 aimed at Urban Co-operative Banks. This amendment updates the framework around Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), which were refined on June 19, 2026.

The amendment allows exemptions from CRR and SLR maintenance for new FCNR(B) deposits. Such exemptions are intended to support urban co-operative banks in strengthening their liquidity positions and enhancing their capacity in deposit mobilization.

For Urban Co-operative Banks, these regulatory updates represent a crucial opportunity to optimize their financial operations in the competitive banking landscape. Ensuring compliance with these changes is essential for maintaining operational efficiency.

Legal advisors should remain informed about these amendments as they are likely to influence compliance advisory and operational strategies for urban co-operative banks dealing with deposit products.