**Executive Summary**
The Reserve Bank of India (RBI) issued amendment directions on December 11, 2025, modifying the existing directions concerning the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for Small Finance Banks. This amendment is a consequence of the Banking Laws (Amendment) Act, 2025 and primarily revises the definition of 'Fortnight' and related reporting requirements. Most provisions are effective from December 15, 2025, while one provision will take effect December 12, 2025.
**Key Points / Main Content**
* **Amendment Overview:**
* These are Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025.
* These directions modify the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.
* The amendment directions come into effect from December 15, 2025, except paragraph 7 (viii) (2), which shall be effective from December 12, 2025.
* **Definition of Fortnight:**
* The definition of 'Fortnight' has been amended to mean "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", effective December 15, 2025.
* Consequential changes are made to reporting in Form A and Form VIII to align with the amended definition.
* **Reporting Changes:**
* "Friday" is replaced with "day" in specified paragraphs.
* "Each alternate Friday" is replaced with "last day of each fortnight" and the word 'seven' shall be substituted with 'five' in specified paragraphs.
* The words ‘final’ and ‘within 20 days from expiry of the relevant fortnight’ are deleted in paragraph 33.
* The words 'alternate Fridays' is replaced with 'last day of each fortnight' in paragraph 39.
* The words ‘Friday’ / ‘that Friday' shall be substituted with 'last day of the fortnight' / 'last day of that fortnight’ in Annex I (Form A).
* In Annex II (Form VIII):
* 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'
* "Provisional or Final or Special Form A return" no longer exists; banks submit a single Form A return, which is available on the Centralised Information Management System (CIMS) portal with new return codes.
* Form A and Form VIII returns are to be submitted electronically on the CIMS portal using digital signatures of two authorized officials. Banks must ensure compliance with prevalent IT laws.
* Banks are required to submit fortnightly Form A returns starting from December 15, 2025, and monthly Form VIII returns from December 2025 on the CIMS portal.
* **Transitional Measures for CRR and SLR Maintenance:**
* For the fortnight of December 16-31, 2025, and the first fortnight of January 2026, CRR and SLR maintenance is based on NDTL as on November 28, 2025, and December 15, 2025, respectively.
* From January 16, 2026, CRR and SLR maintenance will be based on the NDTL as on the last day of the second preceding fortnight.
* During December 13-15, 2025, CRR and SLR maintenance is based on the NDTL as on November 28, 2025. Banks shall maintain a minimum CRR of 100% of the required CRR during this period.
**Impact Analysis**
**Small Finance Banks**
* **Impact:**
* Banks need to adjust their CRR and SLR maintenance and reporting practices to align with the new definition of "Fortnight."
* Banks need to adapt to the new reporting structure, submitting single Form A returns electronically through the CIMS portal.
* Banks must implement necessary IT infrastructure to support electronic submissions with digital signatures.
* **Action Required:**
* Update internal systems and processes to reflect the amended definition of "Fortnight."
* Familiarize staff with the new reporting structure and updated Form A and Form VIII requirements.
* Ensure compliance with IT laws for electronic submissions.
* Submit Form VIII return of December 2025 on CIMS portal, both with old and new return codes.
* Submit Form A return for December 12, 2025, as per the extant reporting structure.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and implementing monetary policy. This document contains directions about Small Finance Banks' Cash Reserve Ratio and Statutory Liquidity Ratio.
Banking Laws (Amendment) Act, 2025: An act that amends various provisions related to banking laws, impacting the maintenance of Cash Reserve Ratio and Statutory Liquidity Ratio. It modifies the definition of 'Fortnight'.
Reserve Bank of India Act, 1934: The act that established the Reserve Bank of India and defines its powers and functions. Section 42 is referenced for powers exercised by the RBI in this document.
Banking Regulation Act, 1949: An act that regulates banking companies in India. Section 35A and sections 18 and 24 are referenced for the powers exercised by the RBI in this document.
Cash Reserve Ratio (CRR): The fraction of deposits banks are required to keep with the Reserve Bank of India.
Statutory Liquidity Ratio (SLR): The percentage of net demand and time liabilities that banks must maintain in safe and liquid assets.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/149
DOR.RET.REC.355/12.01.001/2025-26 December 11, 2025
Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and
Statutory Liquidity Ratio) Amendment Directions, 2025
Please refer to Reserve Bank of India (Small Finance 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 (Small Finance 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 (Small Finance
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 (18), 9, 21, 23, 24, 25 the words ‘Friday' shall be substituted
with ‘day'.
(iii) In paragraph 31, 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 32, 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 33, the words ‘final’ and 'within 20 days from expiry of the
relevant fortnight' shall be deleted.
(vi) The paragraph 35 shall be deleted.
(vii) A paragraph 38 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
the banks. 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 38, namely:
1. “38 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. “38 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 39, 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 28(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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