The Reserve Bank of India has raised the daily minimum Cash Reserve Ratio (CRR) maintenance requirement for all scheduled banks. Effective from the fortnight beginning October 16, 2026, banks must maintain at least 99 percent of their required CRR every day. This marks a significant tightening from the earlier threshold of 90 percent.
Key Details of the Daily CRR Change
Under the current rules, scheduled banks must maintain a daily minimum CRR of not less than 90 percent of the prescribed requirement. However, the RBI has now decided to raise this daily minimum CRR limit to 99 percent. The average CRR maintained across the reporting fortnight must still meet the full prescribed level. The new rule takes effect from the fortnight starting October 16, 2026.
The RBI issued this directive under Section 42(1) of the Reserve Bank of India Act, 1934. Chief General Manager Manoranjan Padhy signed the official circular, referenced as RBI/2026-27/290. Additionally, the notification was addressed to all scheduled banks across India.
What This Means for Banks and Liquidity
The RBI reviewed current liquidity conditions before making this decision. As a result, it concluded that stricter daily reserve maintenance was necessary. Therefore, banks will now have far less flexibility in managing their day-to-day cash reserves.
Previously, banks could dip as low as 90 percent of the required CRR on any given day, provided the fortnightly average held up. For example, a bank could maintain lower reserves mid-fortnight and compensate later. However, the new 99 percent daily floor effectively eliminates this buffer. Banks must now keep their cash reserves nearly full every single day.
This change signals the RBI’s intent to tighten short-term liquidity in the banking system. Meanwhile, banks will need to review their daily liquidity management strategies to ensure compliance. Failure to meet the daily minimum CRR can attract penalties under RBI regulations. As a result, treasury teams at scheduled banks will need to act quickly ahead of October 16.
Banking analysts may interpret this move as part of the RBI’s broader effort to manage excess liquidity and keep monetary conditions aligned with its policy stance. Additionally, it reinforces the central bank’s close watch over systemic cash flows.
Read the official RBI notification here.
Source: RBI Notifications
