On December 6, 2024, the Reserve Bank of India (RBI) announced a reduction in the Cash Reserve Ratio (CRR) for all banks by 50 basis points. The CRR will be decreased in two equal tranches: first, from 4.25% to 4.00% of net demand and time liabilities (NDTL). The first reduction, to 4.25%, will take effect from December 14, 2024, while the second reduction, to 4.00%, will be effective from December 28, 2024. This decision was made following the Statement on Developmental and Regulatory Policies issued on the same date. The modification aims to ease liquidity in the banking system.
RESERVE BANK OF INDIA
Maintenance of Cash Reserve Ratio (CRR)
RBI/2024-25/95
DoR.RET.REC.52/12.01.001/2024-25 Dated: December 06, 2024
All Banks
Madam / Dear Sir,
Maintenance of Cash Reserve Ratio (CRR)
Please refer to our circular DOR.RET.REC.33/12.01.001/2022-23 dated May 04, 2022 and relative notification on the captioned subject.
2. As announced in the Statement on Developmental and Regulatory Policies dated December 06, 2024, it has been decided to reduce the Cash Reserve Ratio (CRR) of all banks by 50 basis points in two equal tranches of 25 basis points each to 4.0 per cent of net demand and time liabilities (NDTL). Accordingly, banks are required to maintain the CRR at 4.25 per cent of their NDTL effective from the reporting fortnight beginning December 14, 2024 and 4.00 per cent of their NDTL effective from fortnight beginning December 28, 2024.
3. A copy of the relative notification DoR.RET.REC.53/12.01.001/2024-25 dated December 06, 2024 is enclosed.
Yours faithfully,
(Veena Srivastava)
Chief General Manager
Encl.: As above
DoR.RET.REC.53/12.01.001/2024-25
December 06, 2024
NOTIFICATION
In exercise of the powers conferred under the sub-section (1) of Section 42 of the Reserve Bank Act, 1934 and sub-section (1) of Section 18 of the Banking Regulation Act, 1949 (10 of 1949), read with Section 56 thereof, and in partial modification of the earlier notification DOR.RET.REC.34/12.01.001/2022-23 dated May 04, 2022, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every bank shall be 4.25 per cent of its net demand and time liabilities effective from the reporting fortnight beginning December 14, 2024 and 4.00 per cent of net demand and time liabilities effective from fortnight beginning December 28, 2024.
(R. Lakshmi Kanth Rao)
Executive Director
