I posted on X in mid‑October 2026 about the RBI’s new Cash Reserve Ratio (CRR) directive that raises the minimum daily compliance to 99 % of the required CRR, up from the previous 90 % buffer.
The RBI now requires banks to keep 99 % of their required CRR in their RBI account at all times.
At the time of my post banks were holding about 96 % of the required CRR (₹784 k cr parked vs ₹817 k cr required).
The rule is expected to pull roughly 30 000 cr out of the banking system, reducing excess liquidity.
The RBI described the measure as a temporary step to curb a liquidity overload and to temper bank lending growth until the system adapts.