Reserve Bank of India Raises Daily CRR Maintenance Requirement

The Reserve Bank of India increased the minimum daily Cash Reserve Ratio (CRR) maintenance requirement for scheduled banks from 90 percent to 99 percent. The change takes effect from the fortnight beginning October 16, 2026.

While the overall CRR rate remains at 3 percent, the new requirement reduces the operational flexibility banks used to manage daily reserve balances. Previously, banks could dip to 90 percent on individual days as long as their fortnight average remained compliant.

The central bank implemented the measure after a review of liquidity conditions revealed a surplus in the banking system between Rs 3.88 lakh crore and Rs 3.92 lakh crore in early October. This surplus was driven by foreign currency non-resident bank deposits and government expenditure.

Governor Sanjay Malhotra stated that while surplus liquidity is expected to ease naturally, the bank will continue using open market operations and variable rate reverse repo auctions to manage the system.