1. CRR is a reserve requirement for bank.
2. **CRR** - A portion of net demand and time liabilities (NDTL) as on the last day of second preceding fortnight (1-15th of the month or 16th to last day of the month) has to be parked with RBI for the current period of 15 days.
3. Now **NDTL** = Liabilities to Others $+$ Net Inter-bank Liabilities (Liabilities to the Banking System – Assets with the Banking System, *if positive or 0 if negative)*.
4. Now NDTL (for prescribed CRR to be maintained by SCBs) = Liabilities to Others + ~~(Liabilities to the Banking System – Assets with the Banking System, since April 1997)~~
where certain liabilites are not included for computation of NDTL for CRR as described in the latest instructions (Master Direction on Cash Reserve Ratio and Statutory Liquidity Ratio).
5. **Minimum CRR** *(withdrawn)*- In terms of Section 42 (1) of the Reserve Bank of India Act, 1934 the Reserve Bank having regard to the needs of securing the monetary stability in the country, ==prescribed the CRR for Commercial Banks and Co-operative Banks without any floor or ceiling rate.==
1. The RBI Act, 1934 was amended by Parliament in June 2006 and the Reserve Bank of India (Amendment) Bill, 2006 came into force with effect from April 1, 2007.
2. Originally the floor rate and ceiling rate were 3% and 15% respectively. In 1990-91, the maximum was raised from 15% to 20%.
3. So just before the changes on April 1, 2007, there was a floor rate of 3% and a ceiling rate of 20% of net demand and time liabilities of banks for CRR balances.
4. Minimum CRR = 3% of NDTL = 3% of (liabilities to others $+$ net inter-bank liabilities, if positive or 0 if negative), *where certain liabilites were not included*
6. CRR is governed by the provisions of section 42(1) of the RBI Act, 1934 and Section 18(1) of BR Act, 1949
1. Scheduled (Urban Co-operative Banks and Commercial Banks) - **Section 42(1)** of the _Reserve Bank of India Act, 1934_ governs **CRR**, and **Section 42(1A)** governs **Incremental CRR (I-CRR)** for these banks.
2. Non-scheduled UCBs - Section 18 of the Banking Regulation Act, 1949 (AACS-As Applicable to Co-operative Societies) (BR Act, 1949(AACS)) governs CRR, and Section 56 makes the act applicable to co-operative banks (including non-scheduled Urban Co-operative banks)
3. A short note on [types of banks](Types%20of%20Banks.md)
## Maintenance of CRR
1. All scheduled banks (non-scheduled banks cooperative banks can maintain it in other ways too, and not just with RBI) in India are required to maintain with the Reserve Bank, by way of cash reserve, a sum equivalent to such percent (called CRR) of the total of its NDTL in India as on on the last day of the second preceding fortnight (1-15th of the month or 16th to last day of the month).
2. ==This amount can be maintained only in cash, cash as defined in the [(Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, (2025)](https://www.rbi.org.in/scripts/BS_ViewMasDirections.aspx?id=13160)==
1. The funds deposited with RBI under SDF are eligible asset for maintenance of SLR, but are not adjusted for CRR, as stated in [Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, (2025)](https://www.rbi.org.in/scripts/BS_ViewMasDirections.aspx?id=13160)
3. **CRR on daily basis**
1. Banks are given some flexibility. They are required to maintain minimum CRR balances upto a prescribed (for example, 80%) of the total CRR requirement on all days of the fortnight, such that the average of CRR maintained daily shall not be less than the CRR prescribed by the Reserve Bank. This is done to provide flexibility to banks in choosing an optimum strategy of holding reserves depending upon their intra period cash flows.
2. ==III.8 Averaging of the CRR== in the Report of the Internal Working Group to Review the Liquidity Management Framework, submitted in [Sep 26, 2019](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf)
3. **Earlier**
1. November 6, 1999 - Before the fortnight starting from this day, CRR was maintained with a lag of one week but was changed to a lag of two weeks from the fortnight starting from Nov 6, 1999
1. Nov, 1999 - In order to improve the cash management by banks, as a measure of simplification, a lag of two weeks was introduced in the maintenance of stipulated CRR by the scheduled banks. With effect from the fortnight beginning from November 6, 1999, the prescribed CRR during a fortnight has to be maintained by every bank based on its NDTL as on the last Friday of the second preceding fortnight i.e. based on the NDTL as on reporting Friday, October 22, 1999 and so on.
2. Thus, the prescribed CRR during a fortnight had to be maintained by every bank based on its NDTL as on the last Friday of the second preceding fortnight. Fortnight’ means the period from Saturday, following a reporting Friday, to the second following Friday, both days inclusive.
3. The first reporting Friday was as on March 29, 1985.
4. Every Friday after a period of 14 days from the above date is a reporting Friday. So the next reporting Friday was April 12, 1985, then April 26, 1985, May 10, 1985 and so on.
5. It was maintained with a lag of two weeks (earlier 1 week) from November 6, 1999 based on the NDTL of the reporting Friday of October 22, 1999. ==So the required CRR maintenance for the fortnight from April 13 to April 26, 1985 was based on NDTL as on March 29, 1985.==
6. July 20, 2021 - Master Direction - [Reserve Bank of India-Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) Directions - 2021](RBI_Master%20Directions_20210720_Master%20Direction%20-%20Reserve%20Bank%20of%20India_Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR)_Directions%20-%202021%20(Updated%20as%20on%20December%2016,%202024)_WITHDRAWN.pdf) (July 20, 2021) *(withdrawn)1. Since July 20, 2021, it was changed on December 16, 2024, September 25, 2023, April 06, 2022
7. Nov 28, 2025 - [Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025](https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13160) was published
1. Master Direction - [Reserve Bank of India-Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) Directions - 2021](RBI_Master%20Directions_20210720_Master%20Direction%20-%20Reserve%20Bank%20of%20India_Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR)_Directions%20-%202021%20(Updated%20as%20on%20December%2016,%202024)_WITHDRAWN.pdf) (July 20, 2021) *was withdrawn*6. April 15, 2025 - [Banking Laws (Amendment) Act, 2025](GoI_Gazettee-Notification_20250415_THE%20BANKING%20LAWS%20(AMENDMENT)%20ACT,%202025.pdf) was enacted.
8. It amended 5 acts - Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (nationalized 14 major Indian banks) and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (nationalized 6 additional banks)
9. These provisions came into force on Aug 1, 2025 and Nov 1, 2025 and Dec 15, 2025
10. Dec 4, 2025 - [An Explainer note by Press Information Bureau](PIB_20251204_Banking%20Laws%20(Amendment)%20Act,%202025.pdf) on Banking Laws (Amendment) Act, 2025
11. Dec 08, 2025 - Govt notified via Gazette of India Dec 15, 2025 as the effective date for various provisions of the Banking Laws (Amendment) Act, 2025
1. To refresh, The Banking Laws (Amendment) Act, 2025 had amended various provisions, including the section 42 of Reserve Bank of India Act, 1934 and the sections 18 and 24 of Banking Regulation Act 1949, relating to maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
2. It revised Banking Regulation (Companies) Rules (published on Dec 10, 2025), Reserve Bank of India Scheduled Banks’ Regulations, 1951 (published on Jan 15, 2026)
12. December 10, 2025 - Pursuant to the enactment of the Banking Laws (Amendment) Act, 2025, the Banking Regulation (Companies) Amendment Rules, 2025 were published in the Gazette dated December 10, 2025
7. ==[December 11, 2025](RBI_Notification_20251211_Reserve%20Bank%20of%20India%20(Commercial%20Banks%20–%20Cash%20Reserve%20Ratio%20and%20Statutory%20Liquidity%20Ratio)%20Amendment%20Directions,%202025.pdf) - RBI published Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025.==
1. the definition of ‘Fortnight’ shall be redefined as ‘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.
2. 'reporting Friday' now means ‘last day of each fortnight’ and the words ‘that Friday' mean the ‘last day of such fortnight’.
3. So the number of reporting cycles in a year is now fixed at 24 as against 26-27 reporting fortnights in the earlier system.
8. January 15, 2026 - Pursuant to the enactment of the Banking Laws (Amendment) Act, 2025, the Reserve Bank of India Scheduled Banks' (Amendment) Regulations 2025 (THE RESERVE BANK OF INDIA SCHEDULED BANKS' REGULATIONS, 1951) was published in the Gazette of India dated January 15, 2026.
9. Jan 22, 2026 - [Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026](RBI_Notification_20260122_Reserve%20Bank%20of%20India%20(Commercial%20Banks%20–%20Cash%20Reserve%20Ratio%20and%20Statutory%20Liquidity%20Ratio)%20Amendment%20Directions,%202026.pdf) was published
### How banks maintain CRR?
1. A bank meets the shortage in its required reserves (maintenance of CRR balances) by borrowing in the inter-bank market; similarly it deploys its excess reserve holdings in the inter-bank market.
2. However, if the banking system as a whole holds less reserves than is required, the system shortage is supplied by the central bank through its liquidity operations/LAF in the form of repurchase (or, repo) operations. Analogously, if the banking system as a whole holds more reserves than is required, the excess reserves are absorbed by the central bank through reverse repo operations/deposit facility.
3. ==Thus, liquidity operations of the Reserve Bank are essentially operations to equilibrate reserve holdings of banks.==
4. **Net Inter-bank liabilities** *(were exempted from maintenance of CRR from April 1, 2007)*
1. April 15, 1997 - With effect from the fortnight beginning from April 25, 1997, RBI exempted Scheduled Commercial Banks (excluding Regional Rural Banks - RRBs) from maintaining the prescribed CRR (which was 10% at that time) and SLR on their net inter-bank liabilities to the banking system.
1. The move aimed at developing the money market and reducing reserve burdens.
2. ==This decision freed up significant funds for banks and allowed them to meet CRR requirements through inter-bank borrowing, influencing liquidity in the money market.==
3. With this "Liabilities to the banking system in India as computed under Clause (d) of the Explanation to Section 42(1) of the RBI Act, 1934" (also called net inter-bank liabilites) were exempted.
4. Here the amount of net inter-bank liabilities was to be calculated after reducing assets with banking system from liabilities to the banking system.
5. **Statutory Minimum CRR**
1. April 25, 1997 - RBI clarified that net inter-bank liabilities were exempted from prescribed CRR, but subject to maintenance of minimum CRR (effective CRR) requirement of 3.00% on total/entire demand and time liabilities (which is same as NDTL), as shown in the return referred to in sub section (2) of the Section 42 of the Reserve Bank of India Act , 1934.
2. To refresh, total/entire demand and liabilities = NDTL = liabilities to others + (net inter-bank liabilities, if positive or 0 is negative).
2. [April 19, 2001](RBI_Notification_20010419_Section%2042%20(1)%20of%20the%20Reserve%20Bank%20of%20India%20Act,%201934%20Maintenance%20of%20Cash%20Reserve%20Ratio%20(CRR).pdf) - interbank liabilities of maturity of 15 days and above, were exempted even from the prescription of minimum statutory CRR requirement of 3.0%, effective from the fortnight beginning August 11, 2001.
3. Aug 5, 2004 - [Master Circular on CRR & SLR](RBI_Master%20Circular_20040805_Master%20Circular%20on%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
4. July 19, 2005 - [Master Circular on CRR & SLR](RBI_Master%20Circular_20050719_Master%20Circular%20on%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
5. [June 22, 2006](RBI_Notification_20060622_Maintenance%20of%20CRR%20on%20Exempted%20Categories.pdf) -
1. Upon [amendment](RBI_Notification_20060622_Amendments%20to%20the%20Reserve%20Bank%20of%20India%20Act%20and%20Cash%20Reserve%20Ratio.pdf) to sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934, which removed the statutory minimum CRR requirement of 3% of NDTL, RBI clarified that liabilities referred in the "Exempted Categories" will continue to be exempted from the prescribed CRR requirement of 5% (prevailing rate) of the NDTL of scheduled commercial banks
6. October 11, 2006 - [Master Circular on CRR & SLR](RBI_Master%20Circular_20061011_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
7. [March 1, 2007](RBI_Notification_20070301_%20SCBs%20-%20Maintenance%20of%20Cash%20Reserve%20Ratio.pdf) - The overall minimum 3% on total NDTL was imposed again, as govt *DID NOT NOTIFY* Section 3 of the Reserve Bank of India (Amendment) Act, 2006 in the Gazette notification No.S.O.21(E) dated January 9, 2007.
8. [April 20, 2007](RBI_Notification_20070420_Maintenance%20of%20Cash%20Reserve%20Ratio%20(CRR)%20on%20Exempted%20Categories.pdf)
1. Government notified Section 3 of the Reserve Bank of India (Amendment) Act, 2006 (Act 26 of 2006) and has appointed the first day of April 2007 as the date on which the provisions of Section 3 of the said Act shall come into force.
2. the statutory minimum CRR requirement of 3 per cent of total demand and time liabilities was repealed.
3. On April 20, 2007, effective from April 1, 2007, Banks were not required to maintain the daily average CRR on the exempted categories of liabilities.
9. September 18, 2009 - [Master Circular on CRR & SLR](RBI_Master%20Circular_20090918_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
10. July 1, 2010 - [Master Circular on CRR & SLR](RBI_Master%20Circular_20100701_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
5. **Which Banks maintain CRR?**
1. ==It is maintained by both Scheduled and Non-scheduled [[Types of Banks|banks]]. Non-scheduled ones can keep reserves in different ways.==
2. Here's we will categorise banks into Co-operative and Commercial banks:
3. *Co-operative banks are:* Primary (Urban) Co-operative Banks (UCBs), State Co-operative Banks (StCBs), District Central Co-operative Banks (DCCBs)
1. Scheduled co-operative Bank: They have to keep cash reserves with RBI
2. *Non-scheduled co-operative Banks: They need not keep cash reserves with RBI but*
1. either cash reserves with itself or
2. by way of balance in a current account with the Reserve Bank
3. or the State Co-operative Bank of the State or
4. in case of primary (Urban) co-operative bank with the Central Co-operative Bank of the district concerned or any of the above ways.
6. *Commercial banks:* All banks other than Co-operative Banks are classified as a Commercial banks.
1. They can be further classified into 7 types - public sector banks, private banks, foreign banks, regional rural banks, payments bank, small finance banks, local area banks.
2. As on March-24, there are 141 commercial banks.
1. Scheduled Commercial banks: Of the 141, 137 are scheduled and only 4 are non-scheduled.
2. Non-Scheduled Commercial banks:
1. 4 Non-Scheduled banks: Both the local area banks (Coastal Local Area Bank Ltd. and Krishna Bhima Samruddhi LAB Ltd.) and 2 payments banks (Jio Payments Bank Ltd. and NSDL Payments Bank Ltd).
2. *These non-scheduled ones have the options like above for maintenance of CRR.
3. Related Note - [Types of Banks](Types%20of%20Banks.md)
7. **What if banks fail to maintain CRR?**
1. A bank may have a surplus or a shortfall in its balances on any particular day and not attract penalty. The average for the fortnight has to be maintained along with minimum daily maintenance.
2. On 23 July 2013, the minimum daily CRR balance maintenance was [increased](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=8263) to 99% from 70% owing to steep fall in rupee.
3. It was [reduced](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=8444) from 99% to 95% on Sept 20, 2013.
4. [April 5, 2016](RBI_Notification_20160405_Section%2042(1)%20of%20the%20Reserve%20Bank%20of%20India%20Act,%201934%20-%20Change%20in%20Daily%20Minimum%20Cash%20Reserve%20Maintenance%20Requirement.pdf) - It was [reduced](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=10332) to 90%. From June 26, 2020, it is 90%. This is for only scheduled banks.
5. CRR on daily basis
1. This requirement of maintaining minimum CRR balance up to a fixed % (say 70%) of the prescribed CRR on a daily basis has ==helped avoid bunching of reserve requirements of individual banks==. [^1]
2. It has also provided flexibility to banks in choosing an optimum strategy of holding reserves depending upon their intra period cash flows.
6. [Bank Rate](Bank%20Rate.md) now is used to penalise for shortfall in CRR balances.
## Concept of I-CRR
1. Section 42(1A) of RBI Act, 1934 allows RBI to impose I-CRR on the Scheduled Commercial Banks
1. It is an additional average daily balance, that is addition to the balances prescribed under Section 42(1) of the Act, the amount of which shall not be less than the rate specified by the RBI in the notification published in the Gazette of India, such additional balance being calculated with reference to the excess of the total of the NDTL of the bank as shown in the return 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
2. The effect of such stipulation is different for individual banks depending on the rates of growth in their net demand and time liabilities.
3. The funds are released back into the system in stages so that banking system liquidity is not subjected to sudden shocks (deluge) and money markets function in an orderly manner.
2. Incremental CRR during the India's BoP crisis of 1991
1. In view of the acute foreign exchange situation and the consequent need to contain overall demand by moderating monetary expansion, in addition to the cash reserve ratio of 15%; scheduled commercial banks were required to maintain, with effect from May 4, 1991, an incremental cash reserve ratio of 10 per cent of the increase in net demand and time liabilities over the level-as on May 3, 1991 and up to the level of April 17, 1992.
2. Reversal - the incremental CRR of 10 per cent was discontinued from April 17, 1992.
3. RBI released 1/3rd of the amount impounded in 3 instalments in the fortnights beginning October 17, 1992, November 14, 1992 and December 12, 1992, and the remaining two-third of the balances impounded during this period in 12 equal instalments over the period May 1998 to March 1999, implying a lower effective CRR rate.
3. [August 10, 2023](RBI_MPS_20230810_Governor's%20Statement.pdf) - Withdraw of ₹2,000 notes from circulation
1. In Monetary Policy Statement, RBI asked scheduled banks to maintain an incremental cash reserve ratio (I-CRR) of 10% on the increase in their net demand and time liabilities (NDTL) between May 19, 2023 and July 28, 2023.
2. The measure was intended to absorb the surplus liquidity generated by various factors, including the return of ₹2000 notes to the banking system.
3. [Sep 08, 2023 ](RBI_Press%20Release_20230908_Incremental%20Cash%20Reserve%20Ratio%20(I-CRR)-%20Review.pdf)- It was decided to discontinue the I-CRR in a phased manner.
## Reporting
1. Fortnightly Return in Form A (CRR) - With a view to monitoring compliance of maintenance of statutory reserve requirement viz. CRR and SLR by the SCBs, the Reserve Bank of India has prescribed statutory return i.e. Form A Return (for CRR) under Section 42 (2) of the RBI Act, 1934.
1. Under Section 42(2) of the RBI Act, 1934, every scheduled commercial bank (including Regional Rural Banks), scheduled state co-operative bank, Small Finance Bank, Payments Bank and Local Area Bank shall submit to Reserve Bank a provisional Return in Form 'A' / Form ‘B’ as the case may be, at the close of business on each alternate Friday and **within seven days** after the date of the relevant fortnight to which it relates, which is used for preparing press communiqué.
2. The final Return in Form 'A' or Form ‘B’ (for scheduled state co-operative banks), as the case may be, shall be submitted to Reserve Bank within 20 days from expiry of the relevant fortnight along with Memorandum to form 'A', Annexure A to Form ‘A’ and Annexure B to Form ‘A’ return, based on the recommendation of the Working Group on Money Supply: Analytics and Methodology of Compilation, all SCBs in India are required to submit from the fortnight beginning October 9, 1998.
2. Nov 28, 2025 - [Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025](https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13160) was published
1. Master Direction - [Reserve Bank of India-Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) Directions - 2021](RBI_Master%20Directions_20210720_Master%20Direction%20-%20Reserve%20Bank%20of%20India_Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR)_Directions%20-%202021%20(Updated%20as%20on%20December%2016,%202024)_WITHDRAWN.pdf) (July 20, 2021) *was withdrawn
3. [December 11, 2025](RBI_Notification_20251211_Reserve%20Bank%20of%20India%20(Commercial%20Banks%20–%20Cash%20Reserve%20Ratio%20and%20Statutory%20Liquidity%20Ratio)%20Amendment%20Directions,%202025.pdf) - RBI published [Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025.
1. Under Section 42 (2) of the RBI Act, 1934, all SCBs are required to submit to Reserve Bank a provisional Return in Form 'A' at the close of business on last day of each fortnight within 5 days (earlier 7) after the date of the relevant fortnight to which it relates.
2. There is no Provisional or Final or Special Form A return. The banks are required to submit single Form A return.
3. Along with Form 'A', they are required to submit Memorandum to form 'A', Annexure A to Form ‘A’ and Annexure B to Form ‘A’ return
## Interest Payments on CRR
^03a8ba
1. [[RBI_Annual Report_1990.pdf#page=46&selection=229,0,239,16|April 21, 1990]]:
1. With effect from the fortnight beginning April 21, 1990. interest was paid on a two-tier formula:
1. on the eligible cash balances based on the net DTL as of March 23, 1990 - interest was be paid at the rate of 10.5%.
2. on the eligible cash balances maintained on the increase in net DTL after March 23. 1990 - interest would be paid at the rate of 8.0%.
2. [Annual Report 1991-92](RBI_Annual%20Report_1992.pdf#page=18&selection=20,0,42,5) - RBI observed that the interest paid on eligible cash balances attenuates (reduces) the effectiveness of CRR to achieve the desired monetary effect and as such it is better to lower the CRR prescription and not pay interest on these balances rather than maintain the CRR prescription at a higher level and pay interest on these balances.
3. Effective [[RBI_Annual Report_1993.pdf#page=13&selection=14,17,23,8|October 17, 1992]] - no interest was paid on the eligible cash balances maintained on the basis of increase in net DTL after March 23, 1990.
4. [October 25, 1997](RBI_Annual_Trend%20and%20Progress%20of%20Banking%20in%20India_199811_Report%20on%20Trend%20and%20Progress%20of%20Banking%20in%20India_Banking%20Developments%20and%20Policy%20Perspectives%20(Part%201%20of%202).pdf) - With a view to rationalising the system of payment of interest on eligible CRR balances, with effect from the fortnight beginning this date, banks were paid 4% p.a on all eligible cash balances maintained with the RBI.
5. [April 19, 2001](RBI_Notification_20010419_Section%2042%20(1)%20of%20the%20Reserve%20Bank%20of%20India%20Act,%201934%20Maintenance%20of%20Cash%20Reserve%20Ratio%20(CRR).pdf) - With effect from the fortnight beginning April 21, 2001, RBI announced all scheduled commercial banks, will be paid interest at the rate of 6.0% p.a on eligible cash balances maintained with the RBI under the requirement of CRR.
6. [April 2001](RBI_MPS_200104_FY2001-02.pdf) - In the annual policy statement of April 2001, it was announced that at a subsequent stage, interest would be paid at the Bank Rate.
7. [Oct 22, 2001](RBI_Notification_20011022_Maintenance%20of%20Cash%20Reserve%20Ratio(CRR)%20-%20Section%2042(1)%20of%20the%20Reserve%20Bank%20of%20India%20Act,%201934.pdf) - **Interest rate on eligible balances linked to the Bank Rate**
1. With effect from the fortnight beginning November 3, 2001, all Scheduled Commercial Banks were to be **paid interest at the Bank Rate** on eligible cash balances maintained with Reserve Bank under provision to Section 42(1) and 42(1A) of Reserve Bank of India Act, 1934.
8. April 2003 - Eligible CRR balances maintained by banks with the Reserve Bank starred getting paid interest on a monthly basis.
9. [December 2003](RBI_Group-Committee_20031202_Report%20of%20the%20Internal%20Group%20on%20Liquidity%20Adjustment%20Facility.pdf) - Report of the Internal Group on Liquidity Adjustment Facility (December 2003) was published
1. It had [recommended](RBI_Press%20Release_20040911_RBI%20Increases%20Cash%20Reserve%20Ratio%20(CRR)%20for%20Scheduled%20Banks.pdf) that "with substantial scaling down of CRR coupled with marked decline in overall interest rate structure in the economy and increasing liquidity needs of participants in the wake of higher interlinkages among different segments of the market, the degree to which CRR had been impacting banks as an implicit taxation earlier is considerably less in recent period.
2. Accordingly, the remuneration of eligible cash balances at the Bank Rate is no longer justifiable and the remuneration of CRR, if any, be delinked from the Bank Rate and placed at a rate lower than the repo rate".
10. [June 18, 2004](RBI_Notification_20040618_Section%2042%20of%20the%20RBI%20Act,%201934%20–%20Revision%20of%20procedure%20for%20payment%20of%20interest%20on%20the%20eligible%20CRR%20balances%20on%20monthly%20basis.pdf) - Revision of procedure for payment of interest on the eligible CRR balances on monthly basis
11. [Sep 11, 2004](RBI_Press%20Release_20040911_RBI%20Increases%20Cash%20Reserve%20Ratio%20(CRR)%20for%20Scheduled%20Banks.pdf)
1. Citing the suggestions from the group, RBI reduced the interest rate of 3.5% p.a on their eligible cash balances maintained with RBI under CRR requirement as against the current practice of payment of interest at the Bank Rate, which was 6% p.a, with effect from the fortnight beginning September 18, 2004. The payment of interest on monthly basis will continue as at present
11. [Sept 11, 2004](RBI_Notification_20040911_%20Section%2042%20(1)%20of%20the%20Reserve%20Bank%20of%20India%20Act,%201934%20–%20Maintenance%20of%20Cash%20Reserve%20Ratio%20(CRR).pdf) - RBI **de-linked interest payments** (just to recall, interest was paid on eligible cash balances maintained with RBI under CRR requirement, that is between prescribed rate and 3%, and no interest was payable on any amount actually maintained in excess of the balance required to be maintained) from Bank Rate, and fixed (reduced) it, to a rate lower than repo rate, that is at 3.5% p.a, with effect from September 18, 2004 ^99754e
1. Until that day, all Scheduled Commercial Banks were paid interest at the Bank Rate (a rate higher than repo rate) on eligible cash balances maintained with Reserve Bank under provision to Section 42 (1) and 42 (1A) of the Reserve Bank of India Act, 1934.
2. CRR was also hiked in 2 stages by 0.5 percentage point from 4.5% to 4.75%, and to 5%, effective from September 18, 2004, October 02, 2004 respectively subject to minimum 3% as stipulated under the Reserve Bank of India Act, 1934.
12. [June 22, 2006](RBI_Notification_20060622_Section%2042(1)%20of%20Reserve%20Bank%20of%20India%20Act,%201934%20–%20Maintenance%20of%20CRR.pdf) - The **statutory minimum CRR requirement of 3% of total demand and time liabilities was withdrawn with effect from June 22, 2006.**
1. The Reserve Bank of India (Amendment) Bill, 2006 was [enacted](RBI_Notification_20060622_Amendments%20to%20the%20Reserve%20Bank%20of%20India%20Act%20and%20Cash%20Reserve%20Ratio.pdf) on June 12, 2006, and it came into force with its gazette notification
2. sub-Section 42 (1A) of the RBI Act, 1934, was amended, and statutory minimum CRR of 3.0% was repealed.
3. With this, RBI could prescribe the CRR for scheduled banks without any floor rate or ceiling rate
4. sub-Section 42 (1B) of the RBI Act, 1934 was omitted, and the Reserve Bank declared it would not be paying interest on any portion of CRR balances of banks.
5. Thus, RBI announced that **no interest would be payable on CRR balances with effect from the fortnight beginning June 24, 2006.**
6. Section 3 of Reserve Bank of India (Amendment) Act, 2006 provided for the removal of:
1. the ceiling and floor on the CRR to be prescribed by the RBI having regard to the need for securing monetary stability in the country, and
2. the provision for interest payment on eligible CRR balances [i.e., the amount of reserves between the statutory minimum CRR and the CRR prescribed by the RBI]. Since the above Section 3 is not notified so far, the minimum CRR level of 3 per cent and the maximum CRR level of 20 per cent of total of bank's demand and time liabilities shall remain in force from June 22, 2006 as per the extant provisions of Section 42 (1) of the Reserve Bank of India Act, 1934.
7. Banks had to maintain the same prescribed CRR balances every day with no flexibility (of average balances).
13. [June 22, 2006](RBI_Notification_20060622_Maintenance%20of%20CRR%20on%20Exempted%20Categories.pdf) - The overall minimum 3% CRR was imposed again on the entire NTDL (including the certain categories of liabilites which were exempted from the prescribed CRR).
14. [Dec 22, 2006](RBI_Notification_20061208_RBI%20increases%20Cash%20Reserve%20Ratio%20(CRR).pdf) - CRR was hiked in 2 stages to from 5% to 5.25% and 5.5%
15. Jan 9, 2007
1. Govt. of India in their Extraordinary Gazette notification No.S.O.21(E) dated January 9, 2007 have notified January 9, 2007 as the date on which all the provisions, **except Section 3 of the Reserve Bank of India (Amendment) Act, 2006** shall come into force.
16. ==[March 1, 2007](RBI_Notification_20070301_%20SCBs%20-%20Maintenance%20of%20Cash%20Reserve%20Ratio.pdf) - REPEAL of Non-payment of Interest and Implementation of minimum CRR of 3%==
1. As section 3 was *NOT NOTIFIED* on Jan 9, 2007, RBI decided:
1. to pay interest to all Scheduled Commercial Banks on the eligible CRR balances at the rate of
1. 3.50 per cent per annum on eligible cash balances maintained with the Reserve Bank of India under CRR requirement from the fortnight beginning June 24, 2006 to December 8, 2006.
2. 2.00 per cent on eligible cash balances maintained with the Reserve Bank of India under CRR requirement from the fortnight beginning from December 9, 2006 to February 16, 2007.
3. 1.00 per cent on eligible cash balances maintained with the Reserve Bank of India under CRR requirement from the fortnight beginning from February 17, 2007.
2. to ask SCBs to maintain a minimum CRR of 3% of the total demand and time liabilities
2. CRR for SCBs was [hiked](RBI_Notification_20070301_Section%2042(1)%20of%20Reserve%20Bank%20of%20India%20Act,%201934-Maintenance%20of%20Cash%20Reserve%20Ratio%20(CRR).pdf) to 5.75% effective fortnight beginning from February 17, 2007 and 6.00% effective from the fortnight beginning from March 3, 2007.
17. [Feb 13, 2007](RBI_Press%20Release_20070213_RBI%20increases%20Cash%20Reserve%20Ratio%20(CRR).pdf) - CRR was hiked in 2 stages 25 basis points each, from 5.5% to 6%
18. [April 4, 2007](https://rbi.org.in/scripts/NotificationUser.aspx?&Id=3390) - CRR was hiked in 2 stages, based on [March 30, 2007](RBI_Press%20Release_20070330_%2020070330_RBI%20Announces%20Monetary%20Measures.pdf) press release, from 6% to 6.25% and 6.5%
1. Interest payment on eligible CRR balances with RBI under the CRR requirement was reduced to 0.5% with effect from the fortnight beginning April 14, 2007
2. Minimum CRR of 3% was still in force
> [!important] Section 3 of the Reserve Bank of India (Amendment) Act, 2006 was notified
> 1. [April 13, 2007](RBI_Notification_20070413_Reserve%20Bank%20of%20India%20(Amendment)%20Act,%202006-%20Provisions%20Relating%20to%20CRR.pdf) - **No interest payment on eligible CRR balances & No Floor/Ceiling Rate on CRR**
> 1. March 9, 2007 - Government notified Section 3 of the Reserve Bank of India (Amendment) Act, 2006 (Act 26 of 2006), and has appointed April 1, 2007 as the date on which the provisions of Section 3 of the said Act shall come into force.
> 1. June 12, 2006 - THE RESERVE BANK OF INDIA (AMENDMENT) ACT, 2006 , was enacted omitting sub-section (1B) and (1A) of Section 42 with help of section 3
> 2. Pursuant to the govt. notification, the erstwhile statutory minimum CRR maintenance requirement of 3% was withdrawn
> 3. Consistent with the amendment, no interest would be payable on CRR balances of banks with effect from the fortnight beginning March 31, 2007.
> 1. Interest was paid on CRR (required reserves) beyond the statutory minimum of 3% of the net demand and time liabilities until March 31, 2007.
> 2. The sub-section 42 (1B) of the Reserve Bank of India Act, 1934 of the Reserve Bank of India Act, 1934, provided for interest payment on eligible CRR balances (_i.e._, the amount of reserves between the statutory minimum CRR and the CRR prescribed by the RBI).
> 4. With this, banks thus simply had to forgo the returns on these balances as a kind of “tax”.
> 5. CRR on daily basis - The requirement of maintenance of minimum of 70 per cent of the required amount of average daily CRR for a fortnight, on a daily basis during the fortnight, in force since December 2022 continued as it is.
## CRR - Analysis
1. [SLR - Statutory Liquidity Ratio](SLR%20-%20Statutory%20Liquidity%20Ratio.md) is a liqudity requirement for banks, and maintained by banks with themselves.
2. Along with prudent and risk management of bank liabilities, they can also be used to alter the liquidity with the banking system and hence control the money supply, for managing inflation but this impacts the banks the most. When CRR is changed, the amount of funds available with the banks for lending change and hence the deposit/lending rates. In other words, changes in CRR is also a major driver of durable liquidity.
1. But CRR is rarely used in credit control and liquidity management but other [means of durable liquidity](Money%20Market%20Operations%20(MMO).md#Drivers/Sources%20of%20durable%20liquidity%20with%20the%20banking%20system) like [[Open Market Operations (OMOs)|OMOs]].
2. ==Another problem with this tool is that it has a blanket impact on all banks irrespective of their liquidity position.== Hence, when compared to LAF operations, OMOs & MSS, forex operations in their ability to withdraw surplus liquidity, raising CRR is not a very comfortable or attractive option for banks.
3. As CRR is maintained in cash, an hike does not lead to increase demand for government securities like SLR. If CRR is funded by LAF, banks will have to mobilise securities to that amount as collateral.
4. It works like a tax on the banking system. If banks already have insufficient excess reserves (liquidity deficit), it increases the demand for reserve requirement and leads to borrowing from the RBI under the LAF window. Thus the indirect cost of CRR is the LAF rate, and banks do not earn any interest on these required balances. Higher the amount of borrowing under the LAF, higher is the indirect (minimum) cost of CRR for banks.
5. CRR cut:
1. So if there is CRR cut, banks do not have borrow to maintain CRR, and it lowers banks' interest costs. It can then pass on this to customers by reducing lending rates. A cut in CRR immediately increases the liquidity with the banking system by huge amount.
2. But it may not lead to expansion in banks' balance sheet, that is credit off-take, if the demand for credit is poor.
3. So CRR cut does not boost credit growth, it does create conducive environment.
4. So, RBI usually cuts CRR if there is huge demand for credit. A cut in CRR when the demand for credit is poor will rather lead to parking of excess funds with RBI through reverse repo under [LAF](Liquidity%20Adjustment%20Facility%20(LAF).md#Current) or [SDF](Standing%20Deposit%20Facility%20(SDF),%202018.md). During the COVID-19 pandemic, in March-22, poor credit demand led to inter-bank market rate (as measured by WACR) averaging 3.32% and falling below fixed rate reverse repo of 3.35% before the introduction of SDF in April-2022.
6. I- CRR, in August 2023, was also imposed to absorb the surplus liquidity generated by various factors, including the return of ₹2000 notes to the banking system
7. CRR also works in favor of financial intermediaries (like [NBFCs](NBFCs.md) or insurance companies) that take funds from public but are not required to maintain balances with the Reserve Bank.
8. Tool of [Sterilisation](Forex%20Market%20Interventions%20and%20Sterilisation.md#Sterilisation): CRR also could be used as tool to absorb excess liquidity, which has been injected into banks through foreign exchange purchase. In this case, the cost of sterilisation is borne by the banks. Between Sept. 2004 and Feb 2008, CRR was raised by 400 bps points.
9. Along with CRR, banks are required to invest a portion of their NDTL/deposits in government securities as part of their statutory liquidity ratio [[SLR - Statutory Liquidity Ratio|(SLR)]] requirements.
10. CRR has [[Fiscal-Monetary Co-ordination in India - An Assessment 2013 OPEN#^b11769|changed]] from the lows of 3% in Sept-1962 to 15% in July 1989 to 4.1% in June-23.
11. The choice between CRR and policy rates is sometimes difficult.
1. In [Jan 2012](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=25841#:~:text=Considerations%20Behind%20the%20Policy%20Move) , [Duvvuri Subbarao (2008 to 2013)](Duvvuri%20Subbarao%20(2008%20to%202013).md), the then Governor announced the decision to cut CRR by 50 bps points but not policy rates, in 3rd quarter review of policy for 2011-12.
2. On October 31, 2012, CRR was cut by 25 bps points. The aim was to increase liquidity, amid tight liquidity (due to - the currency demand during the *festival season* as people withdraw cash and growth in credit more than deposits, the buildup in government cash balances), and support lending and growth, without sending a wrong signal that inflation was no longer a concern. He had also said that, "To the extent that the CRR cut and the consequent comfort in liquidity position allows idle capacity to be utilized, it will be noninflationary".
3. Here we can recall the [[#^234d1d|autonomous determinants/drivers]] of liquidity (which are different from liquidity management tools):
Currency demand, Bank reserves (required plus excess), Government’s deposits with RBI, Net forex market intervention due to capital flows.
12. CRR is in form of cash maintained with the RBI while [[SLR - Statutory Liquidity Ratio|SLR - Statutory Liquidity Ratio]] can be in form of cash, gold or approved securities with the banks
13. On March 26, 2020, the [Federal Reserve Board](https://www.federalreserve.gov/monetarypolicy/reservereq.htm) eliminated reserve requirements for all depository institutions, effective the same day. Historically, the [National Bank Act of 1863](https://www.federalreservehistory.org/essays/national-bank-act) had specified reserve requirements ranging from 15% to 25% for U.S. banks.
## Balance Sheet: CRR vs OMOs
1. In the Reserve money equation, they are called "Required Reserves". Apart from these required reserves, banks also maintain balances (excess reserves) in current accounts with RBI to meet settlement obligations.
2. Now [Reserve Money](Reserve%20Money.md) = ==Currency in Circulation + Bankers’ Deposits with the RBI/Deposits with RBI by Banks== + Other Deposits with the RBI
= Net Reserve Bank credit to Government \+ ==RBI Credit to the Banks & Commercial Sector== \+ Net Foreign Exchange Assets of RBI (NFA) \+ Government's Currency Liabilities to the Public \- Net non-monetary liabilities of RBI
3. Now Bankers' Deposits with RBI = required reserves + excess reserves.
4. The CRR cut reduces required reserves, and the funds move from "required reserves" to "excess reserves" initially. In other words, durable liquidity with banks increases.
5. Because of increase in the excess reserves with RBI (and durable liquidity with banks), there is reduced demand for reserves (that is liquidity from RBI) which leads to repaying of the funds borrowed by banks under the LAF. This leads to a decline in reserve money as the banks’ deposits with RBI (excess reserves) on the sources side (LHS) decreases (which reduces RBI's liabilities), and "Net RBI's credit to banks(LAF loans)/RBI Credit to the Banks & Commercial Sector" falls on the components side (RHS)
6. On the balance sheet, there is reduction under the head "Deposits with RBI" on the liabilities side, and "loans and advances" on the assets side also decreases
7. So CRR cut increases durable liquidity with banks, shrinks the RBI's balance sheet (reduces reserve money).
1. In 2008-09, bankers’ deposits had declined because of a net reduction in CRR by 250 basis points during the year, and reserve money growth decelerated in 2008-09. [^2]
8. It does not immediately increase the size of commercial banks' balance sheet. This would happen only if there is demand for credit and banks actually fulfills them by providing new credit. So if there is poor credit demand, banks could parked the excess reserves with RBI through reverse repos under the LAF or even SDF, negating the impact of the CRR cut.
9. A cut in CRR leads to increase in money multiplier, which is 1/(Reserve Ratio)
10. ==[Box II.15 Adjusted Reserve Money and Money Multiplier](RBI_Annual%20Report_2009.pdf#page=110&selection=60,0,61,43) in RBI's Annual Report of 2009==
11. **OMOs in G-Secs:**
1. On the other hand, the supply of liquidity (durable) to the banks through outright OMOs expands RBI's balance sheet.
2. ==OMOs increase excess reserves with RBI and reserve money, whereas a CRR cut reduces excess reserves followed with decline in reserve money.==
3. When a bank offer credit, say to a customer of another bank, the excess reserves of the drawee bank falls and that of receiving bank increases. The overall banking system liquidity remains same.
4. When there is demand for currency by public, and there is no enough cash with banks, there is cash withdrawal by banks from RBI against their excess reserves, leading to movement of cash from RBI, to banks and then to public.
5. Thus, the "Excess reserves" with RBI falls, and "Currency-in-Circulation (CiC)" rises. CiC = bank notes and coins with banks + public. So first, the cash with banks rises and when customer withdraws it from banks' ATMs, cash with banks falls, and the currency with public rises.
1. In other words, Currency in circulation, which constitutes the major component of reserve money, which is largely determined by demand conditions. Currency growth exhibited moderate deceleration during 2009-10, consistent with the weakness in economic activities in the first half of the year. [^3]
6. What if banks do not have cash with them and also insufficient excess reserves?
1. In this case, a demand for currency by public will lead to increase in the demand for reserves by banks. Banks will avail liquidity (reserves) under LAF. Reserve Money will rise. RBI credit to banks increases on the asset side, and deposits with RBI increase on the liabilities side.
2. When banks draw cash from RBI after LAF, on the balance sheet, liabilities under the head "Deposits with RBI" decreases, and that under "CiC" increases. So there is no change in the size of balance sheet, and only a transfer of liability along with an internal transfer of assets (gold coins gold bullion, foreign securities, rupee coins and rupee securities) from the Banking Department to the Issue Department. The increase in CiC is matched (according to the RBI Act, 1934) by an equal amount of these assets on the asset side of the Issue Department.
3. But at the same time, this drawdown of excess reserves in form of cash reduces the credit creating potential of the banks.
4. ==Thus, an increase in demand for currency leads to fall in expansion/growth of [money supply ($M_3$)](Sources%20of%20Money%20Stock%20(M3).md) due to a fall in the money multiplier.==
12. In the above, there is assumption that there is demand for, and supply of reserves as the entire banking system is in deficit or surplus (and unable to borrow from or lend to in the inter-bank market).
>*Further Reading*
>1. [Section III.8 Averaging of the CRR](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf) in the Report of the Internal Working Group to Review the Liquidity Management Framework, submitted on Sep 26, 2019
>2. [Box II.15 Adjusted Reserve Money and Money Multiplier](RBI_Annual%20Report_2009.pdf#page=110&selection=60,0,61,43) in RBI's Annual Report of 2009
## Changes in CRR
1. A table of changes in CRR since 1991.
<div style="height:375px;
width:875px">
<iframe src="https://docs.google.com/spreadsheets/d/e/2PACX-1vQNMjSnJ_RccPkna6bueUuI7P6nIaKw_82oYtovkXO-8rVyGRftyGUqG7S8YjTvUfj-HYxlGnkHGYW-/pubhtml?gid=914159868&range=A:G&single=true&widget=true&headers=false" width="100%" height="100%" frameborder="0"></iframe>
</div>
## Data Releases
1. WSS - Cash Balances of Scheduled Commercial Banks (excluding Regional Rural Banks) with RBI
1. WSS - Handbook
2. Daily Press release (as on the previous working day) on Money Market Operations publishes the Cash balances with RBI.
3. Half-Yearly - Monetary Policy Report (April and October)
4. Annual - [Statistical Tables relating to Banks in India: 2024-25](https://data.rbi.org.in/#/dbie/reports/Publication/Time-Series%20Publications/Statistical%20Tables%20Relating%20to%20Banks%20in%20India)
## Related Notes
1. [SLR - Statutory Liquidity Ratio](SLR%20-%20Statutory%20Liquidity%20Ratio.md)
2. [WSS - Ratio and Rates](WSS%20-%20Ratio%20and%20Rates.md)
## Master Directions
1. **Nov 28, 2025** - Master Direction - [Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025](https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13160)
Other versions are for Regional Rural Banks (RRBs), Small Finance Banks (SFB), Local Area Banks (LAB), Payments Bank, Urban Cooperative Banks (UCBs), Rural Cooperative Banks (RCBs)
1. Amendments
1. Jan 22, 2026 - [Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2026](RBI_Notification_20260122_Reserve%20Bank%20of%20India%20(Commercial%20Banks%20–%20Cash%20Reserve%20Ratio%20and%20Statutory%20Liquidity%20Ratio)%20Amendment%20Directions,%202026.pdf)
2. Dec 11, 2025 - [Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=13224)
2. Supersession
1. July 20, 2021 - Master Direction - [Reserve Bank of India-Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) Directions - 2021](RBI_Master%20Directions_20210720_Master%20Direction%20-%20Reserve%20Bank%20of%20India_Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR)_Directions%20-%202021%20(Updated%20as%20on%20December%2016,%202024)_WITHDRAWN.pdf)*(withdrawn)*.
1. Amendments - It was changed on December 16, 2024, September 25, 2023, April 06, 2022.
2. **Nov 28, 2025** - [Reserve Bank of India (Commercial Banks – Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13148)
3. **Master Circulars** - They have been withdrawn
1. Aug 5, 2004 - [Master Circular on CRR & SLR](RBI_Master%20Circular_20040805_Master%20Circular%20on%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
2. July 19, 2005 - [Master Circular on CRR & SLR](RBI_Master%20Circular_20050719_Master%20Circular%20on%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
3. Oct 11, 2006 - [Master Circular on CRR and SLR](RBI_Master%20Circular_20061011_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
4. September 18, 2009 - [Master Circular on CRR & SLR](RBI_Master%20Circular_20090918_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf#page=12&selection=17,74,22,73)
5. July 1, 2010 - [Master Circular on CRR & SLR](RBI_Master%20Circular_20100701_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf#page=11&selection=59,0,60,1)
6. July 01, 2011 - [Master Circular on CRR & SLR](RBI_Notification_20110701_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
7. July 02, 2012 - [Master Circular on CRR & SLR](RBI_Notification_20120702_%20Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
8. July 01, 2013 - [Master Circular on CRR & SLR](RBI_Notification_20130701_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
9. July 01, 2014 - [Master Circular on CRR & SLR](RBI_Notification_20140701_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
10. July 1, 2015 - [Master Circular on CRR & SLR](RBI_Notification_20150701_Master%20Circular%20-%20Cash%20Reserve%20Ratio%20(CRR)%20and%20Statutory%20Liquidity%20Ratio%20(SLR).pdf)
11. RBI started issuing Master Directions on all regulatory matters beginning January 2016.
## Resources
### [[Speeches & Media Interactions|Speeches]]
1. Y.V. Reddy. (Nov 14, 1997). *Financial Sector Reforms and RBI's Balance Sheet Management.* (by Dr. Y.V. Reddy, Deputy Governor, Reserve Bank of India, Mumbai. The Vysya Bank 11th Annual Lecture on Banking at Bangalore on November 14, 1997). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=234)
2. Duvvuri Subbarao. (Jan 31, 2011). ==Implications of the Expansion of Central Bank Balance Sheets==. (Comments of Dr. Duvvuri Subbarao, Governor, Reserve Bank of India at the Special Governors’ Meeting in Kyoto, Japan, on January 31, 2011.). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=547) | [pdf](RBI_Speeches_20110131_Implications%20of%20the%20Expansion%20of%20Central%20Bank%20Balance%20Sheets.pdf)
### [[Publications (Data Releases) & Research#Research|Research]]
[[Working Paper Series (WPS)|Working Paper Series (RBI)]]
1. A.K. Mitra and Abhilasha. ==Determinants of Liquidity and the Relationship between Liquidity and Money: A Primer.== RBI WPS (DEPR) : 14/2012. [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=14331) | [pdf](RBI_Research_WP_20120726_RBI%20WPS%20(DEPR)%20-%2014:2012-%20Determinants%20of%20Liquidity%20and%20the%20Relationship%20between%20Liquidity%20and%20Money-%20A%20Primer.pdf)
2. Y.V. Reddy. (Nov 14, 1997). *Financial Sector Reforms and RBI's Balance Sheet Management.* (by Dr. Y.V. Reddy, Deputy Governor, Reserve Bank of India, Mumbai. The Vysya Bank 11th Annual Lecture on Banking at Bangalore on November 14, 1997). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=234)
### Notifications
They also include Press Releases
1. RBI. [Master Circular](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=12131) - Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) (last updated on December 16, 2024)
2. RBI. Jan 2012. Third Quarter [Review](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=25841) of Monetary Policy 2011-12, Press Statement by Dr. D. Subbarao, Governor (*CRR cut by 50 bps but no repo cut*).
3. RBI. Nov 2012. [Second](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1302) Quarter Review of Monetary policy of 2012-13, Press Statement by Dr. D. Subbarao, Governor (*CRR cut by 25 bps but no repo cut*).
4. CRR is a [cost](https://m.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=724), manage it: K.C. Chakrabarty, Deputy Governor, RBI tells SBI. (Sept. 2012) ^2f2ccf
5. [Chapter III: Organisational Structure, Operating Framework and Instruments of Monetary](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=747) ^234d1d
6. RBI. (Dec, 2022). History of The Reserve Bank of India (1997-2008)-Volume V. [pdf](RBI_History%20of%20The%20Reserve%20Bank%20of%20India%20(1997-2008)_Volume%20V.pdf)
7. [More References](Monetary%20Policy%20Frameworks%20in%20India.md#References)
[^1]: RBI. (2019, September). *[Report]((https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=944)of the Internal Working Group to Review the Liquidity Management Framework*
[^2]: RBI. Annual Report_2010. [pdf](RBI_Annual%20Report_2010.pdf#page=57&selection=20,5,22,22)
[^3]: RBI. Annual Report_2010. [pdf](RBI_Annual%20Report_2010.pdf#page=57&selection=22,24,28,12)
*Page Last Modified on - Mach 20, 2026*