**Executive Summary**
The Reserve Bank of India (RBI) issues Amendment Directions, 2026, effective immediately, concerning Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for Rural Co-operative Banks. These amendments modify the RBI Directions of November 28, 2025, following the enactment of the Banking Laws (Amendment) Act, 2025. The amendments were published in the Gazette of India on December 10, 2025 and January 15, 2026.
**Key Points / Main Content**
* **General Modifications:**
* The directions are called the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026.
* The provisions of these directions come into force with immediate effect.
* These amendment directions modify the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.
* **Paragraph Modifications:**
* In paragraph 20 (3), the words "other development financial institutions as defined in section 2 (cccii) of the RBI Act, 1934" are to be inserted.
* In paragraphs 28 (4) (v), the words "under "Cash in hand" ‘ are to be deleted.
* **Annex I (Form B) Modifications:**
* The words "Industrial Development Bank of India, National Bank for Agriculture and Rural Development, Export-Import Bank of India" will 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” will be deleted and the words "National Housing Bank", "Small Industries Bank", "National Bank for Financing Infrastructure and Development" and "Other development financial institution" will be inserted.
* **Annex II (Form I) and Annex III Modifications:**
* In I (a) (i) and III (a), the words “IDBI Bank limited” will be inserted.
* In IX, the words “such” and “as notified by the Reserve Bank” will be inserted.
* In XI and XIII, the word “such” will be inserted before “per cent”, the words “(or a higher specified percentage)” will be deleted and the words “as notified by the Reserve Bank” will be inserted.
* A new item "Amount deposited with the Reserve Bank, under Standing Deposit Facility Scheme" is to be inserted.
* **Annex II (Form I) Footnote Modifications:**
* In footnotes, the words “Industrial Development Bank of India" will be deleted and “the National Housing Bank, the Small Industries Bank" will be inserted.
**Impact Analysis**
**Rural Co-operative Banks:**
* **Impact:** The amendment directions change the CRR and SLR requirements for these banks.
* **Action Required:** Implement the changes in CRR/SLR management as specified in the amended directions.
**Reserve Bank of India:**
* **Impact:** These amendment directions clarify and update the regulatory framework for Rural Co-operative Banks.
* **Action Required:** Oversee and ensure compliance by Rural Co-operative Banks with the amended directions.
Key Entities Referenced
Reserve Bank of India: India's central bank, the primary regulator mentioned in the document.
Banking Regulation Act, 1949: A key Indian law regulating the banking sector, referenced for powers exercised.
Reserve Bank of India Act, 1934: Another key Indian law relevant to the operations of the Reserve Bank of India.
Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026: The core subject of the document, outlining directions for rural cooperative banks.
Banking Laws (Amendment) Act, 2025: Act which prompted the amendment directions.
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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