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RBI Tightens Daily CRR Maintenance Requirement to 99 Percent Effective October 16
M
Moneycontrol•09-10-2026, 19:10
RBI Tightens Daily CRR Maintenance Requirement to 99 Percent Effective October 16
- •The Reserve Bank of India raised the minimum daily cash reserve ratio maintenance requirement for banks from 90 percent to 99 percent, starting October 16.
- •The policy change aims to keep banking system liquidity tighter on a day-to-day basis by reducing banks flexibility to dip below reserves on individual days.
- •The overall CRR ratio remains unchanged, and economists note the move will help manage daily liquidity conditions without causing a major liquidity drain.
- •The decision follows a surge in banking system liquidity surplus driven by capital inflows and special FCNR-B deposit facilities in August and September.
Key Questions Answered
The Reserve Bank of India raised the minimum daily cash reserve ratio maintenance requirement for banks from 90 percent to 99 percent of the prescribed requirement, effective from the fortnight beginning October 16.
The Reserve Bank of India announced the increase in the minimum daily cash reserve ratio maintenance requirement on October 9, 2026.
The move is aimed at keeping banking system liquidity tighter on a day-to-day basis by limiting banks' flexibility to dip below their prescribed reserve requirements on individual days.
