**Executive Summary**
The Reserve Bank of India issues Amendment Directions, 2026, regarding Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for Urban Co-operative Banks. These directions, effective immediately, modify the 2025 directions and are issued under the Banking Regulation Act, 1949, and the Reserve Bank of India Act, 1934. The original directions referred to were issued on November 28, 2025.
**Key Points / Main Content**
* **Title and Scope**: These are the "Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026".
* **Authority**: Issued under Section 35A of the Banking Regulation Act, 1949 and Section 42 of the Reserve Bank of India Act, 1934.
* **Effective Date**: The provisions come into force with immediate effect.
* **Modifications to Previous Directions**: These directions modify the "Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025".
* **Amendments**:
* Paragraph 20 (3): Insert "other development financial institutions as defined in section 2 (cccii) of the RBI Act, 1934".
* Paragraph 28 (4) (v): Delete "Cash in hand".
* Annex I (Form B): Substitute specific financial institution names and modify item 2 of footnotes.
* Annex II (Form I) and Annex III: Various insertions and deletions related to "IDBI Bank limited", "Reserve Bank", percentage specifications, and a new item: "Amount deposited with the Reserve Bank, under Standing Deposit Facility Scheme".
* Annex II (Form I) Footnotes: Delete "Industrial Development Bank of India" and insert "the National Housing Bank, the Small Industries Bank."
**Impact Analysis**
**Stakeholder: Urban Co-operative Banks**
* **Impact**: The banks must comply with the revised directions concerning CRR and SLR.
* **Action Required**: Update internal processes and calculations to reflect the amendments, and ensure compliance with the amended rules regarding CRR and SLR.
**Stakeholder: Reserve Bank of India**
* **Impact**: The Reserve Bank has revised the regulations regarding the calculation of the CRR and SLR of Urban Co-operative Banks.
* **Action Required**: Monitor compliance by Urban Co-operative Banks, update supervisory and regulatory practices to reflect the changes.
Key Entities Referenced
Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026: Amendment directions issued by the RBI pertaining to the Cash Reserve Ratio and Statutory Liquidity Ratio for Urban Co-operative Banks.
Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025: Original directions that are being amended by the 2026 amendment directions.
Reserve Bank of India: The central bank of India, responsible for issuing the directions.
Banking Regulation Act, 1949: The act that empowers RBI to regulate banking companies.
Banking Laws (Amendment) Act, 2025: Amended act that allows for changes in banking regulations.
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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