The RBI introduces Fourth Amendment Directions addressing CRR and SLR requirements for regional rural banks, enabling essential exemptions.
RBI Issues Fourth Amendment Directions for Regional Rural Banks on CRR and SLR
On August 25, 2026, the Reserve Bank of India released the 'RBI (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026.' This directive amends the CRR and SLR requirements initially established in 2025.
The notable change in this amendment is the exemption granted for maintaining the CRR and SLR on fresh FCNR(B) deposits, facilitating enhanced liquidity for regional rural banks. This initiative is aimed at strengthening the financial positioning of these banks within their operational framework.
Practitioners in the banking sector must take heed of these adjustments, as they may significantly influence liquidity management strategies and the operational dynamics of regional rural banks in their respective markets.
Citations
- Reserve Bank of India (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions (2026)