The RBI has issued the Fourth Amendment Directions regarding CRR and SLR for urban co-operative banks, enabling necessary exemptions.
RBI Releases Fourth Amendment Directions for Urban Co-operative Banks on CRR and SLR
On August 25, 2026, the Reserve Bank of India published the 'RBI (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026.' This amendment updates previous provisions concerning cash reserve ratio and statutory liquidity ratio for urban co-operative banks.
The key aspect of this amendment is the exemption from CRR and SLR maintenance for fresh FCNR(B) deposits. This adjustment is aimed at enhancing the liquidity position of urban co-operative banks and ensuring they can offer competitive services to their customers.
For banking practitioners, these changes highlight a considerable shift in liquidity management approaches within urban co-operative banks. The exemptions will allow for more strategic allocation of resources, bolstering the operational efficacy of these institutions.
Citations
- Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions (2026)