**Executive Summary**
The document is the Reserve Bank of India (RBI) Amendment Directions, 2026, issued on January 22, 2026, pertaining to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for Rural Co-operative Banks. These directions amend the 2025 directions and come into effect immediately. They modify existing regulations based on the enactment of the Banking Laws (Amendment) Act, 2025.
**Key Points / Main Content**
* **Title and Scope:**
* The directions are titled "Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026".
* They amend the "Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025" dated November 28, 2025.
* **Legal Basis:**
* Issued under Section 35A of the Banking Regulation Act, 1949, Section 42 of the Reserve Bank of India Act, 1934, and Sections 18 and 24 (read with Section 56 AACS) of the Banking Regulation Act, 1949, and other enabling provisions/laws.
* Reflect the enactment of the Banking Laws (Amendment) Act, 2025, the Banking Regulation (Co-operative Societies) Amendment Rules, 2025, and the Reserve Bank of India Scheduled Banks' (Amendment) Regulations 2025, published in the Gazette of India on December 10, 2025, and January 15, 2026.
* **Amendments:**
* Paragraph 20 (3): Inserted, "other development financial institutions as defined in section 2 (cccii) of the RBI Act, 1934".
* Paragraph 28 (4) (v): Deleted, ‘under "Cash in hand"’.
* Annex I (Form B):
* Substituted "Industrial Development Bank of India, National Bank for Agriculture and Rural Development, Export-Import Bank of India" with "the National Bank, Exim Bank, the National Housing Bank, the Small Industries Bank, the National Bank for Financing Infrastructure and Development or other development financial institution".
* In item 2, deleted “Industrial Development Bank of India” and inserted "National Housing Bank", "Small Industries Bank", "National Bank for Financing Infrastructure and Development" and "Other development financial institution".
* Annex II (Form I) and Annex III:
* In I (a) (i) and III (a), the words “IDBI Bank limited” shall be inserted.
* In IX, the words “such” and “as notified by the Reserve Bank” shall be inserted.
* In XI and XIII, the word “such” shall be inserted before “per cent”, words “(or a higher specified percentage)” shall be deleted and words “as notified by the Reserve Bank” shall be inserted.
* A new item "Amount deposited with the Reserve Bank, under Standing Deposit Facility Scheme" shall be inserted.
* Annex II (Form I): Deleted "Industrial Development Bank of India" and inserted "the National Housing Bank, the Small Industries Bank".
* **Effective Date:**
* The provisions come into force with immediate effect.
**Impact Analysis**
**Rural Co-operative Banks**
* **Impact:** Need to adhere to the revised Cash Reserve Ratio and Statutory Liquidity Ratio directions and incorporate the amendments in their operations and reporting.
* **Action Required:** Review and update internal policies, procedures, and reporting mechanisms to comply with the amended directions, particularly regarding the definitions and inclusions specified in the annexes.
**RBI (Reserve Bank of India)**
* **Impact:** Enforcement of the amended regulations and supervision of Rural Co-operative Banks to ensure compliance.
* **Action Required:** Monitor the implementation of the amended directions and provide necessary guidance to Rural Co-operative Banks.
Key Entities Referenced
Reserve Bank of India: India's central bank and the regulator issuing these directions.
Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026: The primary policy document being issued.
Banking Regulation Act, 1949: The Act that empowers the Reserve Bank of India.
Reserve Bank of India Act, 1934: The Act that empowers the Reserve Bank of India.
Banking Laws (Amendment) Act, 2025: The act that lead to amendment of banking regulation.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/203
DOR.RET.REC.400/12.01.001/2025-26 January 22, 2026
Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and
Statutory Liquidity Ratio) Amendment Directions, 2026
Please refer to Reserve Bank of India (Rural Co-operative Banks – Cash Reserve
Ratio and Statutory Liquidity Ratio) Directions, 2025 dated November 28, 2025.
2. Pursuant to the enactment of the Banking Laws (Amendment) Act, 2025, the
Banking Regulation (Co-operative Societies) Amendment Rules, 2025 and the
Reserve Bank of India Scheduled Banks' (Amendment) Regulations 2025 have been
published in the Gazette of India dated December 10, 2025 and January 15, 2026
respectively.
3. 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, read with section 56 (AACS), 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 public interest so to do, hereby, issues the Amendment
Directions hereinafter specified.
4. These Directions shall be called the Reserve Bank of India (Rural Co-operative
Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions,
2026.
5. The provisions shall come into force with immediate effect.
6. These Amendment Directions modify the Reserve Bank of India (Rural Co-operative
Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
_______________________________________________________________________________________________________________________________________
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.(i) In paragraph 20 (3), the words "other development financial institutions as
defined in section 2 (cccii) of the RBI Act, 1934" shall be inserted.
(ii) In paragraphs 28 (4) (v), the words ‘under "Cash in hand" ‘ shall be deleted.
(iii) In Annex I (Form B),
• The words "Industrial Development Bank of India, National Bank for
Agriculture and Rural Development, Export-Import Bank of India" shall
be substituted with " the National Bank, Exim Bank, the National
Housing Bank, the Small Industries Bank, the National Bank for
Financing Infrastructure and Development or other development
financial institution".
• Before the footnotes, in item 2, the words “Industrial Development
Bank of India” shall be deleted and the words "National Housing
Bank", "Small Industries Bank", "National Bank for Financing
Infrastructure and Development" and "Other development financial
institution" shall be inserted.
(iv) In Annex II (Form I) and Annex III,
• In I (a) (i) and III (a), the words “IDBI Bank limited” shall be inserted.
• In IX, the words “such” and “as notified by the Reserve Bank” shall be
inserted.
• In XI and XIII, the word “such” shall be inserted before “per cent”,
words “(or a higher specified percentage)” shall be deleted and words
“as notified by the Reserve Bank” shall be inserted.
• A new item “Amount deposited with the Reserve Bank, under Standing
Deposit Facility Scheme” shall be inserted.
(v) In footnotes Annex II (Form I), the words “Industrial Development Bank of
India” shall be deleted and “the National Housing Bank, the Small Industries
Bank” shall be inserted.
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
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