**Executive Summary**
The document provides Amendment Directions to the Reserve Bank of India (Local Area Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025. These amendments, effective December 15, 2025 (with one exception effective December 12, 2025), revise the definition of 'Fortnight' and modify reporting requirements related to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). Banks must submit revised electronic returns via the CIMS portal.
**Key Points / Main Content**
* **Amendment Scope:**
* Modifies the Reserve Bank of India (Local Area Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.
* Amends definition of 'Fortnight' from "Saturday to the second following Friday" to "the period from the first day to the fifteenth day of each calendar month or sixteenth day to the last day of each calendar month, both days inclusive".
* Enactment date of revised definition of fortnight is December 15, 2025.
* **Reporting Changes:**
* CRR and SLR maintenance and reporting in Form A and Form VIII are revised to align with the amended definition of "Fortnight".
* Replaces instances of "Friday" with "day" and "alternate Fridays" with "last day of each fortnight" in specified paragraphs.
* Replaces "seven" with "five" and deletes "provisional" in paragraph 26.
* Deletes paragraph 30 and revises paragraph 33 regarding reporting structure.
* No provisional, final, or special Form A return is required, only a single Form A return.
* New versions of Form A and Form VIII are available on the CIMS portal with new codes.
* **Submission Requirements:**
* Banks must submit Form A return fortnightly from December 15, 2025, and monthly Form VIII return from December 2025 via the CIMS portal.
* Hard copy submissions of Form A and Form VIII are not permitted.
* Electronic submissions require digital signatures from two authorized officials and must comply with IT laws.
* **Transition Period:**
* New paragraphs 33 A and 33 B are inserted related to a transition period.
* CRR and SLR maintenance for December 16-31, 2025, and January 1-15, 2026, will be based on NDTL as of November 28 and December 15, 2025, respectively.
* From January 16, 2026, maintenance will be based on NDTL from the last day of the second preceding fortnight.
* During the December 13-15, 2025 transition, CRR and SLR should be based on NDTL as on November 28, 2025.
* Banks must maintain at least 100% of required CRR during the transition.
* Banks must submit Form A for December 12, 2025, under the existing structure, and Form VIII for December 2025 on the CIMS portal using both old and new codes.
**Impact Analysis**
**Stakeholder:** Local Area Banks (LABs)
**Impact:**
Changes to reporting frequency and definitions affect calculations, processes, and IT systems for CRR and SLR maintenance. New return codes must be implemented and integrated with the CIMS portal.
**Action Required:**
* Update systems and processes to reflect the new definition of 'Fortnight' by December 15, 2025.
* Implement changes to reporting frequency and definitions in Form A and Form VIII.
* Ensure electronic submission via the CIMS portal with digital signatures from two authorised officials.
* Submit Form A and Form VIII as per transition period guidelines.
* Submit Form VIII return for December 2025 on CIMS portal with both old and new return codes.
Key Entities Referenced
Banking Laws (Amendment) Act, 2025: Act that amended provisions including those related to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
Reserve Bank of India (Local Area Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025: Original directions modified by these amendment directions regarding CRR and SLR for Local Area Banks.
Banking Regulation Act, 1949: Act that RBI is using in addition to the RBI Act 1934 for powers conferred
Reserve Bank of India Act, 1934: Act that RBI is using for powers conferred
Reserve Bank of India: The central bank issuing these amendment directions.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/152
DOR.RET.REC.358/12.01.001/2025-26 December 11, 2025
Reserve Bank of India (Local Area Banks – Cash Reserve Ratio and Statutory
Liquidity Ratio) Amendment Directions, 2025
Please refer to Reserve Bank of India (Local Area Banks – Cash Reserve Ratio and
Statutory Liquidity Ratio) Directions, 2025 dated November 28, 2025.
2. The Banking Laws (Amendment) Act, 2025 has amended various provisions,
including the section 42 of Reserve Bank of India Act, 1934 and the sections 18 and
24 of Banking Regulation Act 1949, relating to maintenance of Cash Reserve Ratio
(CRR) and Statutory Liquidity Ratio (SLR).
3. Pursuant to the enactment of the Banking Laws (Amendment) Act, 2025, the
definition of ‘Fortnight’ has been amended from “the period from Saturday to the
second following Friday, both days inclusive” to “the period from the first day to the
fifteenth day of each calendar month or sixteenth day to the last day of each calendar
month, both days inclusive”. As notified in the Gazette of India dated December 08,
2025, the enactment date of the stated definition of fortnight is December 15, 2025.
Consequently, the CRR and SLR maintenance and reporting in their returns i.e., Form
A and Form VIII respectively, also stand revised to align with the amended definition
of the fortnight.
4. Accordingly, in exercise of the powers conferred by Section 35A of the Banking
Regulation Act, 1949 and pursuant to Section 42 of the Reserve Bank of India Act,
1934 and Sections 18 and 24 of Banking Regulation Act, 1949, as amended from time
to time, and all other provisions / laws enabling the Reserve Bank of India in this
regard, the Reserve Bank being satisfied that it is necessary and expedient in the
_______________________________________________________________________________________________________________________________________
विवियमि विभाग, केंद्रीय कायाालय, 12िी ींऔर 13िी ींमींव़िल, िरीमि भिि, िरीमि पॉइींट, म ींबई 400021
Department of Regulation, Central Office, 12th & 13th Floor, Nariman Bhavan, Nariman Point, Mumbai 400021
बैंक व ींदी में पत्राचार का स्वागत करता ै
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords,
etc. It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.public interest so to do, hereby, issues the Amendment Directions hereinafter
specified.
5. These Directions shall be called the Reserve Bank of India (Local Area Banks –
Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025.
6. The provisions shall come into effect from December 15, 2025, except paragraph 7
(viii) (2), which shall be effective from December 12, 2025.
7. These Amendment Directions modify the Reserve Bank of India (Local Area Banks
– Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
(i) In paragraph 6 (14), the definition of ‘Fortnight’ shall be redefined as
‘Fortnight’ means the period from the first day to the fifteenth day of each
calendar month or sixteenth day to the last day of each calendar month, both
days inclusive.
(ii) In paragraphs 6 (19), 8, 17, 19, 20, 21 the words ‘Friday' shall be substituted
with ‘day'.
(iii) In paragraph 26, the words ‘each alternate Friday and’ shall be substituted
with ‘last day of each fortnight’, the word 'seven' shall be substituted with 'five'
and the word 'provisional' shall be deleted.
(iv) In paragraph 27, the words 'reporting Friday' shall be substituted with ‘last day
of each fortnight’ and the words ‘that Friday' shall be substituted with ‘last day
of such fortnight’.
(v) In paragraph 28, the words ‘final’ and 'within 20 days from expiry of the
relevant fortnight' shall be deleted.
(vi) The paragraph 30 shall be deleted.
(vii) A paragraph 33 shall be substituted with following paragraph:
“Under the new reporting structure, as amended vide Banking Laws
(Amendment) Act 2025, there shall be no Provisional or Final or Special Form
A return. The banks are required to submit single Form A return. The new
versions of Form A and Form VIII returns are available on the Centralised
Information Management System (CIMS) portal with new return codes. The
banks are required to submit fortnightly Form A return from December 15,
22025 and monthly Form VIII return from December 2025 on the CIMS portal.
Form A and Form VIII are not to be submitted in hard copy / paper returns by
LABs. The banks have to submit these returns in electronic form on CIMS
portal using digital signatures of two authorised officials. While submitting
these returns, banks have to ensure that the same is compliant with the
prevalent IT laws of the country.”
(viii) Two new paragraphs shall be inserted after paragraph 33, namely:
1. “33 A. The maintenance of CRR and SLR during the fortnight
December 16-31, 2025 and the first fortnight of January 2026 (i.e.,
January 1-15, 2026) is to be done by the banks, based on the Net
Demand and Time Liabilities (NDTL) as on November 28, 2025 and
December 15, 2025, respectively. From the subsequent fortnights
starting from January 16, 2026, the maintenance shall be done, as
presently applicable, i.e., based on the NDTL as on the last day of the
second preceding fortnight”.
2. “33 B. During the transition period of three days i.e., December 13-15,
2025, the maintenance of CRR and SLR is to be done by the banks,
based on the Net Demand and Time Liabilities (NDTL) as on
November 28, 2025. Further, the banks shall maintain minimum CRR
of not less than hundred per cent of the required CRR during the
transition period. The banks shall also submit Form A return for
December 12, 2025, as per the extant reporting structure. Further, the
banks are advised to submit Form VIII return of December 2025 on
CIMS portal, both with old and new return codes.”
(ix) In paragraph 34, the words 'alternate Fridays' shall be substituted with ‘last
day of each fortnight' and 'such Fridays' / 'such Friday' shall be substituted
with ‘such day'.
(x) In Annex I (Form A), the word ‘Friday’ / ‘that Friday’ shall be substituted with
‘last day of the fortnight’ / ‘last day of that fortnight’.
(xi) In Annex II (Form VIII),
3• the ‘First alternate Friday’, ‘Second alternate Friday’, ‘Third alternate
Friday’ shall be substituted with ‘15th day of the Month’ and ‘Last day of
the Month’.
• the word ‘Friday’ shall be substituted with ‘day’ / ‘last day of the fortnight’
(xii) In paragraph 23(3)(iii), the word ‘State Development Loans (SDLs) of the’
shall be substituted with ‘State Government Securities of the respective’.
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
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