Reserve Bank of India Hikes Banks' Minimum Daily CRR Maintenance to 99% from October 16

Key facts

• The Reserve Bank of India (RBI) has raised the minimum daily Cash Reserve Ratio (CRR) maintenance requirement for scheduled banks to 99 per cent from the existing 90 per cent, effective from the fortnight beginning October 16, 2026.
• The decision, announced in an RBI notification issued on Friday and signed by Chief General Manager Manoranjan Padhy of the Department of Regulation, follows a review of prevailing liquidity conditions.
• Currently, banks may maintain a minimum of 90 per cent of required CRR on individual days, provided the average of daily balances over the reporting fortnight does not fall below the prescribed CRR; the revised rule requires at least 99 per cent each day, reducing banks' daily flexibility.
• The move will help reduce banking system liquidity, which stood at a surplus of around 3.88 lakh crore rupees as of October 8.
• The decision raises only the minimum daily maintenance threshold and does not increase the prescribed CRR rate itself; CRR is the portion of banks' net demand and time liabilities maintained as cash reserves with the RBI.