**Executive Summary**
This document contains the Reserve Bank of India's (RBI) Amendment Directions, 2026, concerning the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for Urban Co-operative Banks. These directions, issued on January 22, 2026, modify the previous directions from 2025 and come into force immediately. They pertain to changes following the enactment of the Banking Laws (Amendment) Act, 2025.
**Key Points / Main Content**
* **Title and Scope:**
* These directions are called the Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026.
* They modify the Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.
* **Legal Basis:**
* Issued in exercise of powers conferred by Section 35A of the Banking Regulation Act, 1949, Section 42 of the Reserve Bank of India Act, 1934, and Sections 18 and 24 of the Banking Regulation Act, 1949, as amended.
* **Effective Date:**
* The provisions of these directions come into force with immediate effect.
* **Amendments:**
* Paragraph 20 (3): The words "other development financial institutions as defined in section 2 (cccii) of the RBI Act, 1934" shall be inserted.
* Paragraph 28 (4) (v): The words 'under "Cash in hand" ‘ shall be deleted.
* Annex I (Form B): Replace "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". The words "National Housing Bank", "Small Industries Bank", "National Bank for Financing Infrastructure and Development" and "Other development financial institution" shall be inserted, deleting “Industrial Development Bank of India”.
* 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.
* Footnotes Annex II (Form I): Delete “Industrial Development Bank of India" and insert “the National Housing Bank, the Small Industries Bank".
**Impact Analysis**
**Stakeholder: Urban Co-operative Banks**
* **Impact:** Affected by the changes to CRR and SLR requirements as outlined in the Amendment Directions, 2026. The changes in reporting requirements are also impactful.
* **Action Required:** Banks must immediately comply with the modified regulations and adjust their CRR and SLR management accordingly. They must also implement changes to reporting as described in the modifications.
**Stakeholder: Reserve Bank of India (RBI)**
* **Impact:** Responsible for overseeing the compliance of Urban Co-operative Banks with the new directions.
* **Action Required:** Monitor and enforce the updated regulations, assess the impact of the amendments, and provide guidance to the affected banks.
Key Entities Referenced
Reserve Bank of India: The central bank of India, and the primary regulator mentioned in the document.
Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026: The specific policy being announced, which amends previous directions related to CRR and SLR for Urban Co-operative Banks.
Banking Regulation Act, 1949: Act under which the Reserve Bank of India derives some of its powers.
Reserve Bank of India Act, 1934: Act under which the Reserve Bank of India derives some of its powers.
Urban Co-operative Banks: The financial institutions primarily affected by these directions.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/202
DOR.RET.REC.399/12.01.001/2025-26 January 22, 2026
Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and
Statutory Liquidity Ratio) Amendment Directions, 2026
Please refer to Reserve Bank of India (Urban 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 (Urban 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 (Urban 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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