The 2025 Directions on Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) consolidate and update the regulatory framework applicable to Rural Co-operative Banks, namely State Co-operative Banks and District Central Co-operative Banks. Effective immediately, the Directions prescribe uniform rules for computation, maintenance, reporting, and penalties relating to CRR and SLR, aligned with the Banking Regulation Act and the RBI Act. Banks are required to maintain CRR as a specified percentage of Net Demand and Time Liabilities (NDTL), with phased reductions during late 2025, and SLR at a minimum of 18% of NDTL in approved liquid assets. Detailed guidance is provided on eligible assets, exclusions from NDTL, treatment of savings deposits, foreign currency liabilities, and use of facilities such as MSF and LAF. The Directions also introduce revised reporting through the CIMS portal, auditor certification of NDTL, transitional arrangements, and stringent penalties for non-compliance. All earlier CRR and SLR instructions stand repealed and unified under this regime issued by Reserve Bank of India.
RESERVE BANK OF INDIA
RBI/DOR/2025-26/299
DOR.RET.REC.218/12-01-001/2025-26 | Dated: November 28, 2025
Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on December 11, 2025)
In exercise of the powers conferred by Section 35A read with Section 56 of the Banking Regulation Act, 1949, and pursuant to Section 42 (1) of the Reserve Bank of India Act, 1934 and Sections 18, 24 and 56 of Banking Regulations Act, 1949, as amended from time to time, and all other provisions / laws enabling the Reserve Bank of India (hereinafter referred as the ‘RBI’ or ‘Reserve Bank’) in this regard, the RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.
Chapter I – Preliminary
A. Short Title and Commencement
1. These Directions shall be called the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.
2. These Directions shall come into force with immediate effect.
B. Applicability
3. These Directions shall be applicable to Rural Co-operative Banks (hereinafter collectively referred to as ‘banks’ and individually as a ‘bank’).
In this context, ‘Rural Co-operative Banks’ shall mean State Co-operative Banks (StCBs) and District Central Co-operative Banks (DCCBs) as defined in the National Bank for Agriculture and Rural Development Act, 1981.
4. The maintenance of Cash Reserve Ratio (CRR) shall be reported to the RBI under the following statutory returns:
(1) Form B Return for Scheduled Co-operative Banks.
(2) Form I Return for non-scheduled Co-operative Banks under Section 18 of the Banking Regulation Act, 1949, read with Section 56 thereof.
5. The maintenance of Statutory Liquidity Ratio (SLR) shall be reported to RBI under the statutory return Form I Return (for SLR) for all Co-operative Banks under Section 24 of the Banking Regulation Act, 1949, read with Section 56 thereof.
C. Definitions
5. In these Directions, unless the context otherwise requires, the terms herein shall bear the meaning assigned to them below:
(1) ‘Aggregate Deposits’ shall mean aggregation of demand and time deposits
(2) ‘Apportionment of Saving Bank Account into demand liability and time liability’: a bank shall undertake the apportionment of Saving Bank Account into demand liability and time liability as per the following procedure:
(i) A bank is required to calculate the proportion of its savings bank deposits as at the close of business on March 31 and September 30, into demand and time liabilities in terms of Regulation 7 of The Reserve Bank of India Scheduled Banks’ Regulations, 1951.
(ii) The average of the minimum balances maintained (in each account) in each of the months during the half year period shall be treated by the bank as the amount representing the “time liability” portion of the savings bank deposits. When such an amount is deducted from the average of the actual balances maintained during the half year period, the difference would represent the “demand liability” portion.
(iii) The proportions of demand and time liabilities so obtained for each half year shall be applied for arriving at demand and time liabilities components of savings bank deposits for all reporting fortnights during the next half year.
(3) ‘Approved Securities/SLR securities’: Following securities shall be considered as approved securities (approved securities are commonly known as SLR securities):
(i) Dated securities of the Government of India issued from time to time under the market borrowing programme and the Market Stabilization Scheme;
(ii) Treasury Bills of the Government of India;
(iii) 1State Development Loans (SDLs) of the State Governments issued from time to time under the market borrowing programme.
(iv) Any other instrument as may be notified by the Reserve Bank of India (as and when prescribed).
Explanation:
(a) For Form B Return, banks should report the total investment in approved securities as per its investment book i.e. including encumbered securities.
(b) For SLR purpose, only unencumbered portion of investment in approved securities would qualify as specified SLR assets. The following SLR securities, however, shall not be considered as encumbered securities for SLR purpose and hence they will also qualify as specified SLR asset:
i. Securities lodged with another institution for an advance or any other credit arrangement to the extent to which such securities have not been drawn against or availed of;
ii. Securities offered as collateral to the Reserve Bank for availing liquidity assistance from Marginal Standing Facility (MSF) up to the permissible percentage of the total Net Demand and Time Liabilities (NDTL) in India, carved out of the required SLR portfolio of the bank concerned;
iii. Securities acquired by banks under RBI-LAF and market repo transactions.
(4) ‘Assets with Banking System’ shall:
(i) include balances with banks in current account, balances with banks and notified financial institutions in other accounts, funds made available to banking system by way of loans or deposits repayable at call or short notice of a fortnight or less and loans other than money at call and short notice made available to the banking system.
(ii) any other amounts due from the banking system which cannot be classified under any of the above items are also to be taken as assets with the banking system.
(5) ‘Average daily balance’ means average of the balances held at the close of business on each day of a fortnight.
(6) ‘Bank credit in India’ shall mean all outstanding loans and advances including advances for which provisions have been made and / or refinance has been received {but excludes rediscounted bills without recourse and advances written off at Head Office level (i.e. technical write off)}.
(7) ‘Banking System’ or ’Bank/s’ wherever it appears in the prescribed Form B Return shall mean the banks and any other financial institutions referred to in sub-clause (i) to (vi) of the Explanation below Section 42(1) (e) of the Reserve Bank of India Act, 1934.
(8) ‘Cash’ to be maintained by StCBs and DCCBs shall include:
(i) cash in hand maintained by a co-operative bank, which is a scheduled bank,
(ii) cash in hand maintained by a co-operative bank, not being a scheduled bank, in excess of the cash or balance required to be maintained under Section 18 of the Banking Regulation Act, 1949 (10 of 1949) read with Section 56 thereof;
(iii) any balances maintained by a Co-operative bank, which is a scheduled bank, with the Reserve Bank in excess of the balance required to be maintained by it under Section 42 of the Reserve Bank of India Act, 1934 (2 of 1934);
(iv) any balances maintained by a Co-operative bank, not being a scheduled bank, with the Reserve Bank in excess of the balance required to be maintained by it under Section 18 of the Banking Regulation Act, 1949 (10 of 1949) read with Section 56 thereof;
(v) “Net balances in current accounts” as defined in the Explanation to sub- section
(1) of Section 18 of the Banking Regulation Act, 1949 (10 of 1949) read with Section 56 thereof, in excess of the balance required to be maintained by it under the said section; and
(vi) any balances held by a co-operative bank with the RBI under the Standing Deposit Facility (SDF)
(9) ‘Cash in India / Cash in hand’ shall consist of total amount of rupee notes and coins held by bank branches / ATMs / Cash deposit machines maintained by banks in India, including transit cash on the bank’s books as also cash with Business Correspondents (BCs), but shall exclude cash, where physical possession is with outsourced vendors / BCs, which is not replenished in the bank’s ATM and / or is not reflected on the bank’s books.
(10) ‘Corresponding new bank’ shall mean a corresponding new bank constituted under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act,1970 (5 of 1970); or under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).
(11)‘Demand Deposit’ shall mean a deposit received by the bank which is withdrawable on demand and shall include current deposits, demand portion of savings deposits, credit balances in overdrafts, cash credit accounts, deposits payable at call, overdue deposits, cash certificates, etc.
(12) ‘Demand Liabilities’ shall mean liabilities of a bank which are payable on demand and shall include the following:
(i) current deposits,
(ii) demand liabilities portion of savings bank deposits,
(iii) margins held against letters of credit / guarantees,
(iv) balances in overdue fixed deposits, cash certificates and cumulative / recurring deposits,
(v) outstanding Telegraphic Transfers (TTs), Mail Transfers (MTs), Demand Drafts (DDs),
(vi) unclaimed deposits,
(vii) credit balances in the Cash Credit account,
(viii) deposits held as security for advances which are payable on demand. Explanation: Money at Call and Short Notice from outside the banking system shall be shown against liability to others.
(13) ‘District Central Co-operative Bank’ shall mean the Principal Co-operative Society in a district in a State, the primary object of which is financing of other Co-operative Societies in that district:
Provided that in addition to such Principal Society in a district, or where there is no such Principal Society in a district, the State Government may declare any one or more Co-operative Societies carrying on the business of financing other Co-operative Societies in that district to be also or to be a District Central Co-operative Bank or District Central Co-operative Banks within the meaning of this definition.
(14) 2‘Fortnight’ means the period from the first day to the fifteenth day of each calendar month or sixteenth day to the last day of each calendar month, both days inclusive.
(15) ‘Investment in India’ shall consist of investment in approved government securities and other approved securities (as explained below). These shall include both encumbered and unencumbered securities as per the bank’s investment book. (Except securities acquired by banks under RBI-LAF and market repo).
(16) ‘Investment in India in other Government Securities’ shall mean Investment in Government securities which are not approved securities (such as SDLs issued as UDAY bonds).
(17) ‘Liquidity Adjustment Facility (LAF)’ shall mean fixed and variable rate Repo operations (for injection of liquidity) and reverse repo operations (for absorption of liquidity) conducted by the Reserve Bank of India from time to time.
(18) ‘Marginal standing facility’ shall mean the facility under which the eligible banks can avail liquidity support from the Reserve Bank against excess SLR holdings. Additionally, they can also avail overnight liquidity by dipping into their stipulated SLR, up to a certain per cent of their respective NDTL outstanding at the last day of the second preceding fortnight. The rate of interest under MSF will be above the LAF repo rate, as decided by the RBI from time to time.
(19) ‘Market borrowing programme’ shall mean the domestic rupee loans raised by the Government of India and the State Governments from the public and managed by the Reserve Bank through issue of marketable securities, governed by the provisions of the Government Securities Act, 2006, Public Debt Act, 1944 and the Regulations framed under those Acts, through an auction or any other method, as specified in the notification issued in this regard.
(20) ‘Net balance in current accounts’ shall have the same meaning assigned in explanation (c) to Section 18 of the Banking Regulation Act, 1949 read with Section 56 thereof.
(21) ‘Other Approved Securities’ shall mean Government Securities, other than the securities mentioned in paragraph 6(3) above, subject to the condition that they are notified as approved securities.
(22) ‘Other Demand and Time Liabilities (ODTL)’ shall include the following:
(i) Interest accrued on deposits, bills payable, unpaid dividends, suspense
account balances representing amounts due to other banks or public, net credit balances in branch adjustment account, and any amounts due to the banking system which are not in the nature of deposits or borrowing.
(ii) The balance outstanding in the blocked account pertaining to segregated outstanding credit entries for more than five years in inter-branch adjustment account, the margin money on bills purchased/discounted and gold borrowed by banks from abroad. The conversion rate of gold into rupees is to be done by crossing the London AM fixing for Gold/USD rate with the rupee-dollar reference rate announced by Financial Benchmarks India Private Limited (FBIL).
(iii) Borrowings through instruments qualifying for Upper Tier 2 and Tier 2 capital.
Explanation:
(a) Such liabilities may arise due to items like collection of bills on behalf of other banks, interest due to other banks and so on. If a bank cannot segregate the liabilities to the banking system from the total of ODTL, the entire ODTL may be shown against item II(c) ‘Other Demand and Time Liabilities’ of the Return in Form ‘B’.
(b) Cash collaterals received under collateralised derivative transactions should be included in the bank’s NDTL for the purpose of reserve requirements as these are in the nature of ‘outside liabilities’. Interest accrued on deposits should be calculated on each reporting fortnight (as per the interest calculation methods applicable to various types of accounts) so that the bank’s liability in this regard is fairly reflected in the total NDTL of the same fortnightly return.
(23) ‘Primary Co-operative Bank’ shall mean a co-operative society, other than a primary agricultural credit society satisfying the following conditions:
(i) the primary object or principal business of which is the transaction of banking business;
(iii) the paid-up share capital and reserves of which are not less than one lakh of rupees; and
(iii) the bye-laws of which do not permit admission of any other co-operative society as a member:
Provided that this sub clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such co-operative society out of funds provided by the State Government for the purpose.
(24) ‘Scheduled Bank’ means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934.
(25) ‘State Co-operative Bank’ shall mean the Principal Co-operative Society in a State, the primary object of which is the financing of other Co-operative Societies in the State: Provided that in addition to such Principal Society in a State, or where there is no such Principal Society in a State, the State Government may declare any one or more Co-operative Societies carrying on business in that State to be also or to be a State Co-operative Bank or State Co-operative Banks within the meaning of this definition.
(26) ‘Time Deposits’ shall mean deposits other than demand deposits.
(27) ‘Time Liabilities’ of a bank shall include those liabilities which are payable otherwise than on demand and shall include the following:
i. fixed deposits,
ii. cash certificates,
iii. cumulative and recurring deposits,
iv. time liabilities portion of savings bank deposits,
v. staff security deposits,
vi. margin held against letters of credit, if not payable on demand,
vii. deposits held as securities for advances which are not payable on demand, and
viii. gold deposits.
(28) All other expressions unless defined herein shall have the same meaning as have been assigned to them under the Banking Regulation Act or the Reserve Bank of India Act, or any statutory modification or re-enactment thereto or as used in commercial parlance, as the case may be.
Chapter II – Cash Reserve Ratio (CRR)
A. Cash Reserve Ratio (CRR)
7. Every bank shall maintain in India by way of cash reserve, a sum equivalent to such percent of the total of its NDTL in India, in such manner and for such dates, as the Reserve Bank in terms of Section 42(1) of the RBI Act, 1934 and Section 18(1) of BR Act, 1949 [including provisions of Section 18 (1) of the BR Act as applicable to cooperative banks], may specify, by notification in the Official Gazette, from time to time having regard to the needs of securing the monetary stability in the country.
B. Incremental CRR
8. In terms of Section 42(1A) of RBI Act, 1934, the Reserve Bank may require the scheduled banks to maintain, in addition to the balances prescribed under Section 42(1) of the Act, an additional average daily balance, the amount of which shall not be less than the rate specified by the Reserve Bank in the notification published in the Gazette of India from time to time.
Provided that such additional balance shall be calculated with reference to the excess of the total of NDTL of the bank as shown in the Returns referred to in Section 42(2) of the RBI Act, 1934 over the total of its NDTL at the close of the business on the date specified in the notification.
C. Maintenance of CRR
9. Every scheduled bank shall maintain in India with the Reserve Bank, an average daily balance, the amount of which shall not be less than 3.75 per cent, 3.5 per cent, 3.25 per cent and 3.0 per cent of its NDTL, as on the last day of the second preceding fortnight, effective from the reporting fortnight beginning September 6, October 4, November 1 and November 29, 2025, respectively.
10. Every co-operative bank, (not being a scheduled co-operative bank), shall maintain in India on daily basis by way of cash reserve with itself; or by way of balance in current account with the Reserve Bank or the state co-operative bank of the State concerned; or by way of net balance in current accounts; or in one or more of the aforesaid ways, the amount of which shall not be less than 3.75 per cent, 3.5 per cent, 3.25 per cent and 3.0 per cent of its NDTL, as on the last day of the second preceding fortnight, effective from the reporting fortnight beginning September 6, October 4, November 1 and November 29, 2025, respectively.
D. Maintenance of Minimum CRR on Daily Basis
11. Every scheduled bank shall maintain minimum CRR of not less than 90 percent of the required CRR on all days during the reporting fortnight, in such a manner that the average of CRR maintained daily shall not be less than the CRR prescribed by the Reserve Bank.
E. Computation of Net Demand and Time Liabilities (NDTL)
12. NDTL of a bank includes (a) liabilities towards the banking system net of assets with the banking system as defined in Section 42 of the RBI Act, 1934 for scheduled banks or Section 18 of the Banking Regulation Act, 1949 read with Section 56 thereof for non- scheduled co-operative banks and (b) liabilities towards others in the form of demand and time deposits or borrowings or other miscellaneous items of liabilities.
13. For the purpose of these Directions, the Reserve Bank may specify from time to time with reference to any transaction or class of transactions that such transaction or transactions shall be regarded as liability in India of a bank.
14. If any question arises as to whether any transaction or transactions shall be regarded, for the purpose of these Directions, as liability in India of a bank, the bank shall approach the RBI. The decision of the Reserve Bank thereon shall be final.
15. Loans / borrowings from abroad by banks in India shall be reckoned as ‘liabilities to others’ and shall be subject to reserve requirements. On the other hand, lending to banks abroad will not be considered as assets with the banking system and hence will not be allowed to be netted out from inter-bank liabilities.
16. Upper Tier II instruments raised and maintained in India / abroad shall be reckoned as liability for the computation of NDTL for the purpose of reserve requirements.
17. The balance amount in respect of the drafts issued by the accepting bank on its correspondent bank under the Remittance Facilities Scheme and remaining unpaid shall be reckoned as ‘Liability to others in India’ for the computation of NDTL. The amount received by correspondent banks shall be reckoned as ‘Liability to the Banking System’ and this liability may be netted off by the correspondent banks against the inter-bank assets.
18. Sums placed by banks for issuing drafts / interest / dividend warrants shall be treated as ‘Assets with banking system’ and banks shall have the option to net them off from their inter-bank liabilities.
19. The calculation of the proportion of demand liabilities and time liabilities by scheduled banks in respect of their savings bank deposits on the basis of the position as at the close of business on 30th September and 31st March every year shall continue with interest application on savings bank deposits on a daily product basis.
F. Liabilities not to be included for NDTL computation
20. The liabilities mentioned below shall not form part of liabilities of a bank for the purpose of CRR and SLR:
(1) Paid up capital, reserves, borrowings through instruments qualifying for Tier1 and additional Tier1 capital; any credit balance in the Profit & Loss Account of the bank; amount of any loan /refinance taken from RBI, Exim Bank, NHB, NABARD, and SIDBI;
Provided that the funds collected by various branches of the bank or other banks for the issue and held pending finalization of allotment of the additional Tier1 preference shares shall have to be taken into account for the purpose of calculation of reserve requirements.
(2) In the case of a State Co-operative Bank/District Central Co-operative Bank, any loan taken from the State Government or National Co-operative Development Corporation, any deposit of money representing reserve fund maintained by any cooperative society within the area of operation of the bank. In the case of a District Central Co-operative bank, also an advance taken by it from the concerned State Cooperative Bank.
In respect of any advance granted by the State Co-operative Bank / District Central Co-operative Bank against balance maintained with it, such balance to the extent of amount outstanding in it.
Provided that any advance or other credit arrangement drawn and availed against approved securities shall not be included for NDTL computation for SLR purposes (in case of Scheduled StCBs) and for both CRR and SLR purposes (in case of other StCBs / District Central Co-operative Banks).
(3) The loan / refinance taken by a Scheduled Co-operative Bank from NaBFID will be excluded from the NDTL computation for CRR only (not for SLR). Further, loan / refinance taken by a non-scheduled co-operative bank from NaBFID will not be excluded from the NDTL computation for CRR / SLR;
(4) Net income tax provision;
(5) Amount received from Deposit Insurance and Credit Guarantee Corporation (DICGC) towards claims and held by the bank pending adjustments thereof;
(6) Amount received from Export Credit Guarantee Corporation (ECGC) by invoking the guarantee;
(7) Amount received from an insurance company on ad-hoc settlement of claims pending judgment of the Court;
(8) Amount received from the Court Receiver;
(9) The liabilities arising on account of utilization of limits under Bankers’ Acceptance Facility (BAF);
(10) Subsidy released by NABARD under Investment Subsidy Scheme for Construction/Renovation/Expansion of Rural Godowns;
(11) Subsidy released by Central / State Government which is kept in zero percent fixed deposit receipt (FDR) account, if the terms / conditions prescribed in this regard by the Government and the accounting / operating treatment given to zero per cent FDR account are same as that of zero per cent Subsidy Reserve Fund account;
(12) Net unrealised gain/loss arising from derivatives transaction under trading portfolio;
(13) Income flows received in advance such as annual fees and other charges which are not refundable;
(14) Bill rediscounted by a bank with eligible financial institutions as approved by RBI; and
(15) Amount received by the eligible banks from National Credit Guarantee Trustee Company Limited (NCGTC) by invoking the guarantee towards claims and pending adjustments thereof.
G. Exempted Categories
21. Scheduled Banks are exempted from maintaining CRR on the following liabilities:
(1) Net of liabilities to the banking system from the assets with the banking system defined in Section 42 (1) (e) of the RBI Act, 1934 as under:
(i) Liabilities to the banking system as computed under clause (e) of explanation to section 42(1) of the RBI Act, 1934.
The aggregate of the “liabilities” of a scheduled bank, which is a State Cooperative Bank, to:
(a) the State Bank of India
(b) a corresponding new bank constituted by Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and a corresponding new bank constituted by Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980,
(c) a banking company as defined in Clause (c) of Section 5 of the Banking Regulation Act, 1949 (10 of 1949),
(d) any other financial institution notified by the Central Government in this behalf,
shall be reduced by the aggregate of the liabilities of all such banks and institutions to the State co-operative bank.
(2) Credit balances in Asian Clearing Union (ACU) (US$) Accounts;
(3) Funds Borrowed under market repo against Government securities;
(4) The banks are advised that with effect from the reporting fortnight beginning July 30, 2022, incremental FCNR (B) deposits as also NRE Term deposits with reference to base date of July 1, 2022, mobilised by banks are exempt from maintenance of CRR and SLR. The exemptions are valid for deposits raised till November 04, 2022. The exemption on reserves maintenance will be available for the original deposit amounts till such time the deposits are held in the bank’s books;
H. CRR Computation
22. In order to improve cash management by banks, as a measure of simplification, a lag of one fortnight is allowed to banks to maintain CRR based on the NDTL of the last day of the second preceding fortnight.
23. Reserve Bank of India does not pay any interest on the CRR balances maintained by scheduled StCBs.
I. Loans out of FCNR (B) Deposits and Inter-Bank Foreign Currency (IBFC) Deposits
24. Loans out of Foreign Currency Non–Resident Accounts (Banks), (FCNR [B] Deposits Scheme) and Inter-Bank Foreign Currency (IBFC) deposits shall be included as part of bank credit for the purpose of these Directions. Banks shall use the conversion rate announced by Financial Benchmarks India Private Limited (FBIL) for the purpose of converting foreign assets / liabilities for reporting in the statutory returns mentioned at paragraphs 4 and 5 of these directions. For conversion of assets / liabilities in other currencies, banks may use New York Closing Rate pertaining to the day end of the reporting day for converting such currencies into USD and then use the reference rate of FBIL for USD/ INR for the same day for conversion into INR.
Chapter III – Statutory Liquidity Ratio (SLR)
25. Every bank, in addition to the cash reserves which it is required to maintain under these Directions, shall maintain in India, assets, the value of which shall not be less than such percentage not exceeding 40 percent of the total of its demand and time liabilities in India as on the last day of the second preceding fortnight as the Reserve Bank may, by notification in the Official Gazette, specify from time to time and such assets shall be maintained in such form and such manner, as may be specified in such notification.
A. SLR – Eligible Assets
26. Every state co-operative bank and district central co-operative bank shall maintain in India assets (hereinafter referred to as ‘SLR assets’) the value of which shall not, at the close of business on any day, be less than 18 percent of its total net demand and time liabilities in India as on the last day of the second preceding fortnight in accordance with the method of valuation specified by RBI from time to time.
B. Marginal Standing Facility (MSF)
27. Banks permitted by Reserve Bank shall have the option to participate in the Marginal Standing Facility (MSF) Scheme introduced by the Reserve Bank. The features of the scheme are:
(1) The eligible banks shall have the option to borrow up to two per cent of their respective NDTL outstanding at the end of the second preceding fortnight.
(2) The eligible entities shall also continue to access overnight funds under this facility against their excess SLR holdings.
(3) In the event of banks’ SLR holding falling below the statutory requirement up to two percent of their NDTL, banks shall not have the obligation to seek a specific waiver for default in SLR compliance arising out of use of this facility in terms of notification issued under sub section (2A) of Section 24 of the Banking Regulation Act, 1949.
C. SLR Assets
28. SLR assets shall be maintained by StCBs and DCCBs as under:
(1) Cash, or;
(2) Gold as defined in Section 5(g) of the Banking Regulation Act, 1949 (AACS) (10 of 1949) valued at a price not exceeding the current market price: or;
(3) Unencumbered investment in approved securities as defined in section 5(a) of the Banking Regulation Act, 1949 (10 of 1949) read with section 56 thereof: Provided that the instruments that have been acquired from Reserve Bank of India under reverse repo, shall be considered as eligible assets for SLR maintenance. Provided further that the following securities shall not be treated as encumbered for the purpose of maintenance of SLR assets, namely
(i) securities lodged with another institution for an advance or any other credit arrangement to the extent to which such securities have not been drawn against or availed of;
(ii) securities offered as collateral to the Reserve Bank for availing liquidity assistance under MSF up to the permissible percentage of the total NDTL in India, carved out of the required SLR portfolio of the bank concerned;
(iii) Securities acquired by banks under RBI-LAF and market repo transactions
(4) Explanation- For the purpose of these Directions
(i) Securities lodged in the Gilt Account of the bank maintained with Clearing Corporation of India Ltd. (CCIL) under Constituent Subsidiary General Ledger account (CSGL) facilities remaining unencumbered at the end of any day can be reckoned for SLR purposes by the bank concerned.
(ii) Funds borrowed under repo including tri-party repo in government securities shall be exempted from CRR/SLR computation and the security acquired under repo shall be eligible for SLR provided the security is primarily eligible for SLR as per the provisions of the Act under which it is required to be maintained.
(iii) Borrowings by a bank through repo in corporate bonds and debentures shall be reckoned as liabilities for Cash Reserve Ratio/ Statutory Liquidity Ratio requirement and, to the extent these liabilities are to the banking system, they shall be netted as per Section 42 (1) (d) of the RBI Act, 1934.
(iv) All banks shall maintain investments in Government Securities only in Subsidiary General Ledger (SGL) Accounts with Reserve Bank or in CSGL Accounts of scheduled commercial banks, Primary Dealers (PDs), State Cooperative Banks, and Stock Holding Corporation of India Ltd.(SHCIL) or in the dematerialised accounts with depositories such as National Securities Depositories Ltd (NSDL), Central Depository Services Ltd. (CDSL), and National Securities Clearing Corporation Ltd. (NSCCL).
(v) Banks shall report the SDF balances held by banks with RBI under “Cash in hand” in Form I, as it is an eligible asset for SLR maintenance. The balances held by banks with RBI under the SDF shall not be eligible for Cash Reserve Ratio (CRR) maintenance. Further, scheduled banks are not required to report SDF balances held by them with RBI, in Form B return.
(5) Note:
(i) With a view to disseminating information on the SLR status of a Government security, it has been decided that:
(a) the SLR status of securities issued by the Government of India and the State Governments will be indicated in the Press Release issued by the Reserve Bank of India at the time of issuance of the securities; and,
(b) an updated and current list of the SLR securities will be posted on the Reserve Bank’s website (rbi.org.in) under the link “Database on Indian Economy” under the head ‘Statistics’.
(ii) The cash management bill shall be treated as Government of India Treasury Bill and thus be reckoned as SLR security.
Chapter IV – Procedure for computation of SLR
A. Computation of NDTL for SLR
29. The procedure for computation of NDTL for SLR shall be as below:
(1) Total NDTL for the purpose of SLR under Section 24 (2A) of Banking Regulation Act, 1949, shall be computed on the similar procedure as followed for CRR.
(2) The liabilities mentioned under paragraph 20 of these Directions shall not form part of liabilities for the purpose of SLR also.
(3) Banks shall include their inter-bank assets of term deposits and term lending of all maturities in ‘Assets with the Banking System’ for computation of NDTL for SLR purpose.
(4) Additionally, liabilities mentioned at paragraphs 21(3) and 21(4) are exempt from SLR requirement.
B. Classification and Valuation of SLR eligible securities
30. Classification and valuation of approved securities shall be in accordance with the extant instructions Reserve Bank of India (Rural Co-operative Banks – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025, as applicable.
Chapter V – Reporting
A. Fortnightly CRR Return in Form B / Form I
31. Under Section 42(2) of the RBI Act, 1934, every Scheduled State Co- operative bank shall submit to Reserve Bank a Return in Form ‘B’ (Annex I) at the close of business on 3 last day of each fortnight within five days after the date of the relevant fortnight to which it relates..
32. Where such last day of each fortnight is a public holiday under the Negotiable Instruments Act, 1881, for one or more offices of the bank, the Return shall give at the close of business of the preceding working day’s figure in respect of such office or offices, but shall nevertheless be deemed to relate to last day of such fortnight .
33. The Return in Form ‘B’ shall be submitted to Reserve Bank along with:
(1) the Memorandum to the Return in Form ‘B’ giving details of paid-up capital, reserves, time deposits comprising short-term (of contractual maturity of one year or less) and long-term (of contractual maturity of more than one year), certificates of deposits, NDTL, total CRR requirement, etc.,
(2) Annex I to the Return in Form ‘B’ showing all foreign currency liabilities and assets, and
(3) Annex II to return in Form ‘B’ giving details about investment in approved securities, investment in unapproved securities, memo items such as subscription to shares / debentures / bonds in primary market and subscriptions through private placement.
Note: Format of Memorandum, Annex I and Annex II to return in Form ‘B’ is available under ‘List of Return submitted to RBI’ on the RBI website.
34. 4[Deleted] .
35. Every co-operative bank, not being a scheduled co-operative bank, shall submit a Return in Form I (Annex II) together with Appendix I, II and III, to the regional office concerned of the Reserve Bank, not later than 20 days after the end of the month to which it relates showing the position, inter alia, of cash reserves maintained by the bank under Section 18 of the B.R. Act, 1949 read with Section 56, ibid, as at the close of business on last day of each fortnight during the month. Where such day is a public holiday under Negotiable Instruments Act, 1881 for one or more offices of the bank, the Return shall give the preceding day’s figure in respect of such office or offices, but shall nevertheless be deemed to relate to last day of that fortnight.
36. Whenever there are wide variations between the sources and uses of funds as being reported in the fortnightly Return and the variations exceed 20 per cent, the banks concerned should give reasons therefor in the Return.
37. In terms of Regulation 5(i) (c) of the Scheduled Banks Regulations,1951 and Regulation 4(1) of the Banking Regulation (Co-operative Societies) Rules, 1966, the banks are required to furnish a list of the names, the officials designations and specimen signatures of the officers of the banks who are authorized to sign on behalf of the banks, Returns prescribed under Section 42(2) of the RBI Act, 1934, and Section 18 and 24 of the Banking Regulation Act, 1949. The bank has to submit to Reserve Bank fresh set of signatures whenever there is change in the incumbency.
37 A. 5Under the new reporting structure, as amended vide Banking Laws (Amendment) Act 2025, there shall be no Provisional or Final or Special Form B return. The banks are required to submit single Form B return. The new versions of Form B and Form I returns are available on the Centralised Information Management System (CIMS) portal with new return codes. The banks are required to submit fortnightly Form B return from December 15, 2025 and monthly Form I return from December 2025 on the CIMS portal.
37 B. 6The maintenance of CRR and SLR during the fortnight December 16-31, 2025 and the first fortnight of January 2026 (i.e., January 1-15, 2026) is to be done by the banks, based on the Net Demand and Time Liabilities (NDTL) as on November 28, 2025 and December 15, 2025, respectively. From the subsequent fortnights starting from January 16, 2026, the maintenance shall be done, as presently applicable, i.e., based on the NDTL as on the last day of the second preceding fortnight
37 C. 7During the transition period of three days i.e., December 13-15, 2025, the maintenance of CRR and SLR is to be done by the banks, based on the Net Demand and Time Liabilities (NDTL) as on November 28, 2025. Further, the banks shall maintain minimum CRR of not less than hundred per cent of the required CRR during the transition period.The banks shall also submit Form B return for December 12, 2025, as per the extant reporting structure. Further, the banks are advised to submit Form I return of December 2025 on CIMS portal, both with old and new return codes.
B. Return in Form I (SLR)
38. All Co-operative Banks (scheduled and non-scheduled), are required to submit a Return in Form I (Annex II) under Section 24 of the BR Act, 1949 (AACS) every month showing the position of liquid assets maintained under the said Section as at the close of business on the last day of each fortnight during the month not later than twenty days after the end of the month to which it relates.
Note: In respect of Non-Scheduled rural co-operative banks, Return in Form I is common for reporting cash reserves and statutory liquid assets.]
C. Correctness of computation of NDTL to be certified by Statutory Auditors
39. The Statutory Auditors shall verify and certify that all items of outside liabilities, as per the bank’s books had been duly compiled by the bank and correctly reflected under NDTL in the fortnightly / monthly statutory returns submitted to Reserve Bank for the financial year.
D. Register for daily position of liquidity
40. All co-operative banks shall maintain a register, as per format given in Annex III showing the daily position of cash reserve and liquid assets maintained under Sections 18 and 24 of the Banking regulation Act, 1949 read with Section 56 thereof which shall be put up daily to Chief Executive Officer, who is responsible for ensuring compliance with the statutory liquidity requirements at the close of business every day.
Chapter VI – Penalties
A. Penalties for default in CRR Maintenance
41. Every bank is liable to pay to the Reserve Bank, penal interest as mentioned below, if the daily balance of cash reserve (CRR) held by the bank during any fortnight is below the minimum prescribed by or under these Directions.
(1) Penal interest shall be recovered from all Scheduled State Co-operative Banks in the event of shortfall in maintenance of prescribed CRR on a daily basis for that day at the rate of three percent per annum above the Bank Rate on the amount by which the amount actually maintained falls short of the prescribed minimum on that day and if the shortfall continues on the next succeeding day/s, penal interest shall be recovered at the rate of five percent per annum above the Bank Rate.
(2) In cases of shortfall in maintenance of CRR on average basis during a fortnight, penal interest will be recovered as envisaged in sub-section (3) of Section 42 of Reserve Bank of India Act, 1934.
(3) In the case of a co-operative bank, not being a scheduled co-operative bank, the bank shall be liable to pay to the Reserve Bank, penal interest as envisaged in subsection (1-A) of Section 18 read with Section 56 of the B.R. Act, 1949, if the daily balance of CRR maintained by the bank falls below the prescribed minimum CRR.
42. Banks are required to furnish the particulars such as date, amount, percentage, reason for default in maintenance of requisite CRR and also action taken to avoid recurrence of such default.
43. Under the provisions of Section 42(3A) of the RBI Act, 1934, penal interest at the increased rate of five per cent above the Bank Rate become payable and if the default still continues during the next succeeding fortnight:
(1) Every Director, Manager or Secretary of the scheduled bank who is knowingly and willfully a party to the default, shall be punishable with fine which may extend to ₹500 and with a further fine which may extend to ₹500 for each subsequent fortnight during which default continues.
(2) The Reserve Bank may prohibit a scheduled bank from receiving any fresh deposit after the said fortnight, and if default is made by the bank in complying with the prohibition referred to in this clause, every director and officer of the bank who is knowingly and willfully a party to such default or who through negligence or otherwise contributes to such default shall in respect of each such default be punishable with fine which may extend to ₹500 and with a further fine which may extend to ₹500 for each day after the first, on which a deposit received in contravention of such prohibition is retained by the scheduled bank.
44. Failure to submit the Return/late submission of the Return shall attract the provisions of Section 42(4) of RBI Act, 1934 and banks are liable for imposition of penalties as indicated therein.
In case of non-scheduled co-operative banks, failure to submit the prescribed statutory returns in time under Section 18 and 24 of the Banking Regulation Act, 1949 read with Section 56 thereof, attracts the provisions of Section 46(4) of the Banking Regulation Act, 1949 (AACS), and the banks are liable to imposition of penalties as indicated therein.
B. Penalties for default in SLR Maintenance
45. On the failure of the bank to maintain as on any day, the amount of SLR required to be maintained by a bank, the bank shall be liable to pay to the Reserve Bank in respect of that default, the penal interest as envisaged under Section 24 read with Section 56 of the BR Act, 1949.
46. Failure to submit the prescribed return in time will attract the provisions of Section 46(4) of the Act ibid.
47. Where it is observed that banks are persistently defaulting despite instructions and repeated advice, the Reserve Bank in addition to levy of penalty on such defaulting banks, may be constrained to consider cancelling the licence in case of licensed banks and refuse licence in case of unlicensed banks under Section 22 of the Act, ibid. The banks should, therefore, in their own interest ensure maintenance of statutory liquidity ratio at prescribed rates and be very prompt in submission of required Return to Regional Office concerned of Reserve Bank.
Disclaimer: It is hereby advised that mere inclusion of any item in the above Master Direction should not be construed as a permission to undertake all such activities by a banking entity.
Chapter VII – Repeal and Other Provisions
A. Repeal and saving
48. With the issue of these Directions, the existing Directions, instructions, and guidelines relating to Cash Reserve Ratio and Statutory Liquidity Ratio as applicable to Rural Co-operative Banks stand repealed, as communicated vide circular DOR.RRC.REC.302/33-01-010/2025-26 dated November 28, 2025. The Directions, instructions and guidelines repealed prior to the issue of these Directions shall continue to remain repealed.
49. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions, instructions, or guidelines shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed lists shall be deemed as governed by these Directions. Further, the repeal of these directions, instructions, or guidelines shall not in any way prejudicially affect:
(i) any right, obligation or liability acquired, accrued, or incurred thereunder;
(ii) any, penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder;
(iii) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any such penalty, forfeiture or punishment may be imposed as if those directions, instructions, or guidelines had not been repealed.
B. Application of other laws not barred
50. The provisions of these Directions shall be in addition to, and not in derogation of the provisions of any other laws, rules, regulations, or directions, for the time being in force
C. Interpretations
51. For the purpose of giving effect to the provisions of these Directions or in order to remove any difficulties in the application or interpretation of the provisions of these Directions, the RBI may, if it considers necessary, issue necessary clarifications in respect of any matter covered herein and the interpretation of any provision of these Directions given by the RBI shall be final and binding.
(Manoranjan Padhy)
Chief General Manager
Notes:-
1 State Development Loans are now known as State Government Securities
2 Amended with effect from December 15, 2025 vide Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) (Amendment) Directions, 2025 dated December 11, 2025
3 Amended with effect from December 15, 2025 vide Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) (Amendment) Directions, 2025 dated December 11, 2025
4 Deleted with effect from December 15, 2025 vide Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) (Amendment) Directions, 2025 dated December 11, 2025
5 Inserted with effect from December 15, 2025 vide Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) (Amendment) Directions, 2025 dated December 11, 2025
6 Inserted with effect from December 15, 2025 vide Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) (Amendment) Directions, 2025 dated December 11, 2025
7 Inserted with effect from December 12, 2025 vide Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) (Amendment) Directions, 2025 dated December 11, 2025
