RBI Increases Daily CRR Maintenance Requirement for Banks to 99% from October 16, 2026

The Reserve Bank of India (RBI) has increased the minimum daily cash reserve ratio (CRR) maintenance requirement for banks from 90% to 99%. As per news reports, the revised rule will apply from the reporting fortnight beginning October 16, 2026.  

The RBI announced the change on October 9, citing current liquidity conditions. The overall CRR rate remains unchanged at 3%.  

The decision changes the minimum amount banks must maintain each day, rather than the share of deposits they are required to keep with the central bank. 

How the Requirement Works 

CRR is the portion of a bank’s deposits that must be held with the RBI without earning interest. At the current rate of 3%, banks must keep ₹3 with the central bank for every ₹100 in deposits. 

Until now, banks were required to maintain at least 90% of their prescribed CRR on each day of a reporting fortnight. They could hold lower balances on some days and higher balances on others, provided their average daily balance over the 15-day period met the full requirement. 

The minimum daily requirement will rise to 99% from October 16, leaving banks with less room to vary their reserve balances during the fortnight. 

Banking System Liquidity 

The change comes as the banking system continues to hold surplus funds. The latest RBI data put the liquidity surplus at ₹3.92 lakh crore. The average daily surplus under the liquidity adjustment facility (LAF) stood at ₹5.9 lakh crore since the previous Monetary Policy Committee meeting in August. 

Liquidity rose in August and September following capital inflows, including funds attracted through the RBI’s special foreign currency non-resident bank (FCNR-B) deposit facility.  

The surplus later declined following variable rate reverse repo (VRRR) auctions, open market operation (OMO) bond sales and other liquidity outflows. 

RBI's Liquidity Operations 

At the October 7 monetary policy review, RBI Governor Sanjay Malhotra said surplus liquidity was expected to ease through natural factors during the rest of the financial year. The central bank will continue to assess liquidity and use VRRR auctions, dollar-rupee sell-buy swaps, and OMO operations as needed. 

Read More: Indian Real Estate Attracts $5.9 Billion in Institutional Investments, Up 39% in 2026! 

Conclusion 

The revised rule takes effect on October 16, with the CRR rate remaining at 3% and the minimum daily maintenance requirement rising to 99%. 

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