RBI Raises Daily CRR Maintenance Requirement to 99% From October 16
The Reserve Bank of India (RBI) has increased the daily Cash Reserve Ratio (CRR) maintenance requirement for banks to 99%, effective from October 16, 2026. The change means banks will need to maintain a minimum daily balance equivalent to 99% of their prescribed CRR requirement with the central bank during the relevant reporting period.
The RBI had earlier permitted banks to maintain a lower daily CRR balance, providing flexibility to manage temporary liquidity mismatches during the reporting fortnight. Raising the requirement to 99% significantly reduces this operational flexibility and requires banks to maintain a level much closer to their prescribed average CRR obligation on a daily basis.
The move is expected to have implications for banking-system liquidity and treasury management. Banks will need to monitor cash positions more closely and manage inflows, outflows and short-term funding requirements to ensure compliance.
The higher daily maintenance requirement comes at a time when liquidity conditions and monetary policy are receiving increased attention. A tighter daily CRR requirement can limit the ability of banks to use reserve-management flexibility, although the overall impact will depend on prevailing system liquidity and banks’ individual cash positions.
For banks, the change underscores the importance of stronger liquidity forecasting and intraday cash management. Treasury and risk-management functions will need to account for the higher daily reserve requirement while planning credit deployment and other balance-sheet activities.
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