**Executive Summary**
This document outlines the Reserve Bank of India's (RBI) Amendment Directions, 2026 regarding Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for Rural Co-operative Banks. These directions, issued on January 22, 2026, modify the existing directions from November 28, 2025, and come into force with immediate effect. The amendments are issued under the powers conferred by the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934.
**Key Points / Main Content**
* **Authority and Scope:**
* Issued under Section 35A of the Banking Regulation Act, 1949, and Section 42 of the Reserve Bank of India Act, 1934.
* Modifies the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.
* **Amendments to Paragraph 20 (3):**
* Inserts the phrase "other development financial institutions as defined in section 2 (cccii) of the RBI Act, 1934".
* **Amendments to Paragraph 28 (4) (v):**
* Deletes the words "under "Cash in hand"".
* **Amendments to Annex I (Form B):**
* Replaces "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 before the footnotes, deletes "Industrial Development Bank of India" and inserts "National Housing Bank", "Small Industries Bank", "National Bank for Financing Infrastructure and Development" and "Other development financial institution".
* **Amendments to 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.
* **Amendments to Annex II (Form I) footnotes:**
* Deletes “Industrial Development Bank of India" and inserts “the National Housing Bank, the Small Industries Bank".
**Impact Analysis**
**Stakeholder: Rural Co-operative Banks**
* **Impact:** Must adhere to the revised regulations regarding Cash Reserve Ratio and Statutory Liquidity Ratio.
* **Action Required:** Implement changes as specified in the amendment directions, particularly concerning the classification and reporting of assets and liabilities.
**Stakeholder: Reserve Bank of India**
* **Impact:** Enhanced regulatory oversight and enforcement responsibilities.
* **Action Required:** Ensure the updated regulations are effectively communicated to and implemented by Rural Co-operative Banks.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for issuing the Amendment Directions.
Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026: The primary subject of the document, outlining amendments to directions regarding cash reserve ratio and statutory liquidity ratio for rural co-operative banks.
Banking Regulation Act, 1949: Indian legislation that gives the Reserve Bank of India powers to regulate banks.
Reserve Bank of India Act, 1934: Indian legislation that established the Reserve Bank of India and confers it with certain powers.
Banking Laws (Amendment) Act, 2025: An amendment act to banking laws mentioned as basis of the 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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