**Executive Summary**
This document, issued by the Reserve Bank of India on January 22, 2026, outlines the "Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026." These directions, effective immediately, amend the 2025 directions of the same name, and modify specific sections related to financial institutions defined in section 2 (cccii) of the RBI Act, 1934.
**Key Points / Main Content**
* **General Provisions**
* These directions are titled "Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026."
* The provisions come into force immediately.
* The directions modify the "Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025."
* **Specific Amendments**
* In paragraph 19 (1), insert "other development financial institutions as defined in section 2 (cccii) of the RBI Act, 1934."
* In paragraph 28 (6) (v), delete "under 'Cash in hand'".
* In Annex I (Form A), replace "National Bank for Agriculture and Rural Development, Export Import Bank of India" 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):
* Replace "Export-Import Bank of India and National Bank for Agriculture and Rural Development" 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."
* Replace "specified" with "notified" and delete "from time to time".
* Insert "Amount deposited with the Reserve Bank, under Standing Deposit Facility Scheme".
**Impact Analysis**
**Small Finance Banks**
* **Impact**: Small Finance Banks need to be aware of changes to the Cash Reserve Ratio and Statutory Liquidity Ratio requirements, particularly regarding other development financial institutions. This may impact their financial planning and reporting.
* **Action Required**: Update internal documentation, reporting processes, and systems to reflect the amended directions, specifically those related to the inclusion of "other development financial institutions as defined in section 2 (cccii) of the RBI Act, 1934", Annex I updates, and Annex II updates.
**RBI Reporting Entities**
* **Impact**: Entities responsible for submitting reports to the RBI need to be aware of changes to reporting requirements in Annex I (Form A) and Annex II (Form VIII).
* **Action Required**: Modify reporting templates and processes to reflect the updated names of institutions, the change from "specified" to "notified," removal of "from time to time", and the addition of the "Amount deposited with the Reserve Bank, under Standing Deposit Facility Scheme" item.
Key Entities Referenced
Reserve Bank of India: India's central bank, the issuer of these amendment directions.
Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025: The existing directions that are being amended by this document.
Banking Regulation Act, 1949: The act under which the RBI derives powers for banking regulation.
Reserve Bank of India Act, 1934: The act establishing the Reserve Bank of India and defining its powers.
Banking Laws (Amendment) Act, 2025: The act that enables changes to banking regulation, prompting these directions.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/198
DOR.RET.REC.395/12.01.001/2025-26 January 22, 2026
Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and
Statutory Liquidity Ratio) Amendment Directions, 2026
Please refer to Reserve Bank of India (Small Finance 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 (Companies) 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 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 (Small Finance 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 (Small Finance
Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
(i) In paragraph 19 (1), the words "other development financial institutions as
defined in section 2 (cccii) of the RBI Act, 1934" shall be inserted.
_______________________________________________________________________________________________________________________________________
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.(ii) In paragraphs 28 (6) (v), the words ‘under "Cash in hand" ‘ shall be deleted.
(iii) 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".
(iv) 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.
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
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