Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026

**Executive Summary** This document RBI/2025-26/198, issued on January 22, 2026, by the Reserve Bank of India, provides amendment directions to the "Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025." These amendments, effective immediately, are made pursuant to the Banking Laws (Amendment) Act, 2025 and related regulations published in the Gazette of India. **Key Points / Main Content** * **General Provisions:** * The directions are named "Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026." * The directions modify the "Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025." * The provisions of the Directions come into force with immediate effect. * **Specific Amendments:** * In paragraph 19 (1), the words "other development financial institutions as defined in section 2 (cccii) of the RBI Act, 1934" shall be inserted. * In paragraphs 28 (6) (v), the words 'under "Cash in hand" ‘ shall be deleted. * In Annex I (Form A), the words "National Bank for Agriculture and Rural Development, Export Import Bank of India" shall be substituted with "the Exim Bank, the National Housing Bank, the National Bank, the Small Industries Bank, the National Bank for Financing Infrastructure and Development or the other development financial institution". * In Annex II (Form VIII): * The words "Export-Import Bank of India and National Bank for Agriculture and Rural Development" shall be substituted with "Exim Bank, National Bank, National Housing Bank, Small Industries Bank, National Bank for Financing Infrastructure and Development and other development financial institutions as defined in section 2 (cccii) of the Reserve Bank of India Act, 1934". * The word "specified" shall be substituted with "notified" and words “from time to time" shall be deleted. * a new item "Amount deposited with the Reserve Bank, under Standing Deposit Facility Scheme" shall be inserted. **Impact Analysis** **Small Finance Banks** * **Impact:** These institutions are directly impacted by the changes to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) directions. * **Action Required:** Small Finance Banks must update their systems, processes, and reporting to align with the new definitions and requirements specified in the Amendment Directions, including the amendments to Annex I and Annex II. **Regulatory and Compliance Departments within Small Finance Banks** * **Impact:** These departments are responsible for ensuring adherence to the amended directions. * **Action Required:** Regulatory and compliance departments must carefully review the changes, update internal policies and procedures, and ensure that all relevant personnel are trained on the new requirements. They must also monitor compliance and report any deviations to the appropriate authorities. **Reserve Bank of India (RBI)** * **Impact:** The RBI is responsible for overseeing the implementation of these amendments and ensuring that Small Finance Banks comply with the updated directions. * **Action Required:** The RBI will need to monitor the compliance of Small Finance Banks with the amended directions through regular reporting and inspections. They will also need to provide guidance and clarification to Small Finance Banks as needed to ensure consistent interpretation and application of the amended directions.

Key Entities Referenced