The Reserve Bank of India has raised the minimum daily balance that scheduled banks must hold under the cash reserve ratio (CRR) from 90% to 99% of the required amount. The change takes effect from the fortnight beginning 16 October 2026. It was issued in circular RBI/2026-27/290 dated 9 October 2026, as reproduced by TaxGuru.
What the circular says
The circular is titled "Change in Daily Minimum Cash Reserve Maintenance Requirement" and carries the reference DoR.RET.REC.247/12.01.001/2026-27. It was issued under Section 42(1) of the Reserve Bank of India Act, 1934, and is signed by Manoranjan Padhy, Chief General Manager. The RBI states that it took the decision on a review of current liquidity conditions.
Until now, a scheduled bank could keep as little as 90% of its required CRR on any given day of the reporting fortnight. From 16 October 2026 that floor is 99%.
What stays the same
The circular does not change the CRR rate itself. The fortnightly test also stays as it was: a bank's daily average over the reporting fortnight must not fall below the CRR the RBI has prescribed. Only the daily floor moves.
Who is covered
The change applies to all scheduled banks.
What changes in practice
According to the report, banks now have much less room to let their daily reserve balances swing within a fortnight. They must keep balances much closer to the prescribed CRR each day, where earlier they could run a balance up to 10% below it on some days and make it up on others.
The report does not give the current CRR rate or any estimate of the amount of liquidity affected, and the circular itself states no figure for it.
Key numbers
- Daily minimum CRR: 99% (From 90%)
- Effective: 16 Oct (Fortnight beginning)
- Applies to: All (Scheduled banks)
- Circular: RBI/2026-27/290 (9 October 2026)
What boards and CFOs should note
Three points stand out for finance teams. First, the rule that moved is the daily minimum, not the CRR rate or the fortnightly average. Second, the effective date is the fortnight starting 16 October 2026, which is already under way. Third, the RBI gives its reason as current liquidity conditions, and the circular says nothing further on how long the new daily floor will apply.
Source: TaxGuru, RBI circular RBI/2026-27/290 of 9 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
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