RBI Raises Daily CRR Maintenance Requirement to 99%

As per reports, the minimum requirement of CRR maintenance in a day by scheduled banks has been increased from 90% to 99%, w.e.f. the fortnight beginning October 16, 2026. However, the total CRR still stands at 3% of Net Demand & Time Liabilities (NDTL). The reported action was taken when there was excess liquidity in the banking system worth about ₹3.88 lakh crore on October 8. This will limit the banks’ scope of holding lower levels of reserve balances on any given day.

What Is the Cash Reserve Ratio (CRR)?

Cash Reserve Ratio means the proportion of the bank’s NDTLs that a bank should maintain as its cash balance with the RBI. This ratio is an instrument of monetary policy that controls liquidity in the banking system.

This ratio is provided in Section 42 of the Reserve Bank of India Act, 1934, which applies to scheduled commercial banks. An increase in this ratio results in higher cash balances kept by banks with the central bank and less money available for any other purpose. A decrease would result in more money being released to the banking system.

The cash reserve ratio and daily maintenance amount are two separate things. While the ratio decides the amount of the cash reserve, the daily maintenance requirement determines the proportion of the reserve amount that the bank needs to keep on any one particular day.

What Has Been Changes in Daily CRR Maintenance Requirement?

According to the reported revision, the minimum requirement for the daily maintenance becomes 99% of the prescribed CRR, up from earlier 90%, for the reporting fortnight commencing on October 16th, 2026.

Item	Current requirement	Reported new requirement
CRR rate	3%	3%
Minimum daily maintenance requirement	90% of prescribed CRR	99% of prescribed CRR
Date of implementation	Prior to October 16, 2026	October 16, 2026
Duration of reserve maintenance requirements	Reporting fortnight	Reporting fortnight

In general, banks have been obliged to maintain the prescribed CRR average during the reporting fortnight. Increasing the daily minimum requirement reduces the scope for banks to hold their reserves below the total requirement on any specific day.

The new minimum does not alter the overall rate of the CRR at 3%.

Why Is RBI Increasing Daily CRR Requirement?

This decision has been announced when there is excess liquidity in the Indian banking system. The source estimates this excess to be around ₹3.88 lakh crore on October 8, 2026.

An increased daily maintenance floor means that banks need to ensure that their reserves are maintained more closer to the requirement during the entire period for which the reporting is made. As per the information provided by the source, this increase in requirement is estimated to soak up an additional ₹1 lakh crore from the banking system.

Impact on banks will depend on the nature of their deposit liability and reserves.