Stories
RBI Tightens Cash Holding Rules for Banks: Will Your EMI Increase?
- •The Reserve Bank of India has increased the daily minimum CRR maintenance requirement from 90 percent to 99 percent.
- •The new rule will come into effect from October 16, 2026, following a review of the liquidity situation.
- •Under the updated rule, banks must maintain at least 99 percent of the required cash reserve with the RBI on a daily basis.
- •The directive does not include any instructions to raise loan interest rates, meaning there is no immediate impact on your EMI.
Key Questions Answered
The Reserve Bank of India raised the daily minimum Cash Reserve Ratio (CRR) maintenance requirement from 90 percent to 99 percent. This revised rule comes into effect starting October 16, 2026.
No, this policy change contains no instructions to raise interest rates on home, car, or personal loans, meaning your EMI will not increase immediately based solely on this news. Future loan pricing could be impacted if a particular bank faces higher funding costs, depending on its specific financial position and loan terms.
Under the previous rule, banks could maintain at least 90 percent of their CRR on any given day as long as the fortnight average met the full requirement. With the new rule, banks must maintain at least 99 percent every single day, significantly reducing their flexibility to dip below the prescribed requirement on individual days.
