RBI raises average CRR maintenance requirement for banks

Mumbai: The (RBI) has raised the minimum daily (CRR) maintenance requirement to 99% from 90% from mid-October, in yet another a move aimed at draining surplus liquidity in the as the central bank shifts towards calibrated tightening amid a liquidity surplus of about Rs 4 lakh crore.

In a notification on Friday, RBI said banks will have to maintain a minimum daily balance of 99% of the CRR requirement from the fortnight beginning October 16, up from 90%maintained so far.

CRR is the amount of deposits banks maintain with the RBI without getting any interest. This ratio currently stands at 3% which means out of every Rs 100 of deposits a bank has to keep Rs 3 with RBI without getting any interest. So far banks had the operational flexibility to maintain only 90% of the required amount without invoking penal action. That flexibility has been removed as the RBI looks to curtail banking system liquidity.

“On a review of the current liquidity conditions, it has been decided to increase the minimum daily maintenance of the CRR from 90 per cent of the requirement to 99 per cent effective from the fortnight beginning October 16, 2026,” RBI said.

Bankers said that the new RBI measure will curtail some operational freedom. “So far in a fortnight banks had a flexibility to maintain 90% of the required CRR amount for seven days and maintain 110% for the next half of the reporting fortnight so that the average comes at 100%. That flexibility will now go as banks will mostly have to maintain 100% at all times. Other than some operational changes, this new norm will not lead to any big changes for banks,” said Gopal Tripathi, head treasury and capital markets at .