Reserve Bank of India (Payments Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025

RBI/DOR/2025-26/210 DOR.RET.REC.129/12-01-001/2025-26 November 28, 2025 Previous Versions Reserve Bank of India (Payments Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on January 22, 2026)

Table of Contents Chapter I - Preliminary Chapter II - Cash Reserve Ratio (CRR) Chapter III - Statutory Liquidity Ratio (SLR) Chapter IV - Procedure for computation of SLR Chapter V - Reporting Chapter VI - Penalties Chapter VII - Repeal And Other Provisions Annex I Annex II

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and pursuant to Section 42 of the Reserve Bank of India Act, 1934 and Sections 18 and 24 of Banking Regulation Act, 1949, as amended from time to time, and all other provisions / laws enabling the Reserve Bank of India (hereinafter referred as the ‘RBI’ or ‘Reserve Bank’) in this regard, the RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.

Chapter I - Preliminary

A. Short Title and Commencement

1. These Directions shall be called the Reserve Bank of India (Payments Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.
2. These Directions shall come into force with immediate effect.

B. Applicability

3. These Directions shall be applicable to Payments Banks (hereinafter collectively referred to as ‘banks’ or ‘PBs’ and individually as a ‘bank’ or ‘PB’).
4. The maintenance of Cash Reserve Ratio (CRR) shall be reported to the RBI under the statutory return Form A.
5. The maintenance of Statutory Liquidity Ratio (SLR) shall be reported to the RBI under the statutory return Form VIII.

C. Definitions

6. In these Directions, unless the context otherwise requires, the terms herein shall bear the meaning assigned to them below: (1) ‘Aggregate Deposits’ shall mean aggregation of demand and time deposits. (2) ‘Apportionment of Saving Bank Account into demand liability and time liability’: a bank shall undertake the apportionment of Saving Bank Account into demand liability and time liability as per the following procedure: (i) A bank is required to calculate the proportion of its savings bank deposits as at the close of business on March 31 and September 30, into demand and time liabilities in terms of Regulation 7 of The Reserve Bank of India Scheduled Banks’ Regulations, 1951. (ii) The average of the minimum balances maintained (in each account) in each of the months during the half year period shall be treated by the bank as the amount representing the "time liability" portion of the savings bank deposits. When such an amount is deducted from the average of the actual balances maintained during the half year period, the difference would represent the "demand liability" portion. (iii) The proportions of demand and time liabilities so obtained for each half year shall be applied for arriving at demand and time liabilities components of savings bank deposits for all reporting fortnights during the next half year. (3) ‘Approved Securities/SLR securities’: Following securities shall be considered as approved securities (approved securities are commonly known as SLR securities): (i) Dated securities of the Government of India issued from time to time under the market borrowing programme and the Market Stabilization Scheme; (ii) Treasury Bills of the Government of India; (iii) [1] State Development Loans (SDLs) of the State Governments issued from time to time under the market borrowing programme. (iv) Any other instrument as may be notified by the Reserve Bank of India (as and when prescribed). Explanation: (a) For Form A Return and its Annex, a bank should report the total investment in approved securities as per its investment book i.e. including encumbered securities. (b) For SLR purpose, only unencumbered portion of investment in approved securities would qualify as specified SLR assets. The following SLR securities, however, shall not be considered as encumbered securities for SLR purpose and hence they will also qualify as specified SLR asset: Securities lodged with another institution for an advance or any other credit arrangement to the extent to which such securities have not been drawn against or availed of; Securities offered as collateral to the Reserve Bank for availing liquidity assistance from Marginal Standing Facility (MSF) up to the permissible percentage of the total Net Demand and Time Liabilities (NDTL) in India, carved out of the required SLR portfolio of the bank concerned; Securities acquired by banks under RBI-LAF and market repo transactions. (4) ‘Assets with Banking System’ shall: (i) include balances with banks in current account, balances with banks and notified financial institutions in other accounts, funds made available to banking system by way of loans or deposits repayable at call or short notice of a fortnight or less and loans other than money at call and short notice made available to the banking system. (ii) any other amounts due from the banking system which cannot be classified under any of the above items are also to be taken as assets with the banking system. (5) ‘Average daily balance’ means average of the balances held at the close of business on each day of a fortnight. (6) ‘Bank credit in India’ shall mean all outstanding loans and advances including advances for which provisions have been made and / or refinance has been received {but excludes rediscounted bills without recourse and advances written off at Head Office level (i.e. technical write off)}. (7) ‘Banking System’ or ’Bank/s’ wherever it appears in the prescribed Form A Return shall mean the banks and any other financial institutions referred to in sub-clause (i) to (vi) of the Explanation below Section 42(1)(d) of the Reserve Bank of India Act, 1934. (8) ‘Cash’ to be maintained by a scheduled bank shall include, cash in hand, the net balance in current accounts with other scheduled commercial banks in India. the deposit required under sub-section (2) of Section 11 of the Banking Regulation Act, 1949 to be made with the Reserve Bank by a banking company incorporated outside India; any balance maintained by a PB with the Reserve Bank in excess of the balance required to be maintained by it under Section 42 of the Reserve Bank of India Act,1934 (2 of 1934); any balances held by a bank with the RBI under the Standing Deposit Facility (SDF). (9) ‘Cash in India / Cash in hand’ shall consist of total amount of rupee notes and coins held by bank branches / ATMs / Cash deposit machines maintained by banks in India, including transit cash on the bank’s books as also cash with Business Correspondents (BCs), but shall exclude cash, where physical possession is with outsourced vendors / BCs, which is not replenished in the bank’s ATM and / or is not reflected on the bank’s books. (10) ‘Corresponding new bank’ shall mean a corresponding new bank constituted under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act,1970 (5 of 1970); or under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980). (11) ‘Deemed Cash’ shall be cash held in India for the purpose of SLR maintenance and shall consist of the following: Cash in hand as defined in paragraph 6(9) of these Directions. The deposit required under sub-section (2) of Section 11 of the Banking Regulation Act, 1949 and kept with the Reserve Bank by a banking company incorporated outside India. Any balance maintained by a scheduled bank with the Reserve Bank in excess of the balance required to be maintained by it under Section 42 of the Reserve Bank of India Act, 1934 (2 of 1934); Net balance in current accounts with other SCBs in India. any balances held by a bank with the RBI under the Standing Deposit Facility (SDF). (12) ‘Demand Deposit’ shall mean a deposit received by the bank which is withdrawable on demand and shall include current deposits, demand portion of savings deposits, credit balances in overdrafts, cash credit accounts, deposits payable at call, overdue deposits, cash certificates, etc. (13) ‘Demand Liabilities’ shall mean liabilities of a bank which are payable on demand and shall include the following: current deposits, demand liabilities portion of savings bank deposits, margins held against letters of credit / guarantees, balances in overdue fixed deposits, cash certificates and cumulative/recurring deposits, outstanding Telegraphic Transfers (TTs), Mail Transfers (MTs), Demand Drafts (DDs), unclaimed deposits, credit balances in the Cash Credit account, deposits held as security for advances which are payable on demand. Explanation: Money at Call and Short Notice from outside the banking system shall be shown against liability to others. (14) [2] ‘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. (15) ‘Investment in India’ shall consist of investment in approved government securities and other approved securities (as explained below). These shall include both encumbered and unencumbered securities as per the bank’s investment book. (Except securities acquired by banks under RBI-LAF and market repo). (16) ‘Investment in India in other Government Securities’ shall mean Investment in Government securities which are not approved securities (such as SDLs issued as UDAY bonds). (17) ‘Liquidity Adjustment Facility (LAF)’ shall mean fixed and variable rate Repo operations (for injection of liquidity) and reverse repo operations (for absorption of liquidity) conducted by the Reserve Bank of India from time to time. (18) ‘Marginal standing facility’ shall mean the facility under which the eligible banks can avail liquidity support from the Reserve Bank against excess SLR holdings. Additionally, they can also avail overnight liquidity by dipping into their stipulated SLR, up to a certain percent of their respective NDTL outstanding at the last day of the second preceding fortnight. The rate of interest under MSF will be above the LAF repo rate, as decided by the RBI from time to time. (19) ‘Market borrowing programme’ shall mean the domestic rupee loans raised by the Government of India and the State Governments from the public and managed by the Reserve Bank through issue of marketable securities, governed by the provisions of the Government Securities Act, 2006, Public Debt Act, 1944 and the Regulations framed under those Acts, through an auction or any other method, as specified in the notification issued in this regard. (20) ‘Net balance in current accounts’ shall have the same meaning assigned in explanation (c) to Section 18 of the Banking Regulation Act, 1949. (21) ‘Other Approved Securities’ shall mean Government Securities, other than the securities mentioned in paragraph 6(3) above, subject to the condition that they are notified as approved securities. (22) ‘Other Demand and Time Liabilities (ODTL)’ shall include the following: (i) Interest accrued on deposits, bills payable, unpaid dividends, suspense account balances representing amounts due to other banks or public, net credit balances in branch adjustment account, and any amounts due to the banking system which are not in the nature of deposits or borrowing. (ii) The balance outstanding in the blocked account pertaining to segregated outstanding credit entries for more than five years in inter-branch adjustment account, the margin money on bills purchased / discounted and gold borrowed by banks from abroad. The conversion rate of gold into rupees is to be done by crossing the London AM fixing for Gold/USD rate with the rupee-dollar reference rate announced by Financial Benchmarks India Private Limited (FBIL). (iii) Borrowings through instruments qualifying for Upper Tier 2 and Tier 2 capital. Explanation: (a) Such liabilities may arise due to items like collection of bills on behalf of other banks, interest due to other banks and so on. If a bank cannot segregate the liabilities to the banking system from the total of ODTL, the entire ODTL may be shown against item II(c) 'Other Demand and Time Liabilities' of the Return in Form 'A'. (b) Cash collaterals received under collateralised derivative transactions should be included in the bank’s NDTL for the purpose of reserve requirements as these are in the nature of ‘outside liabilities’. Interest accrued on deposits should be calculated on each reporting fortnight (as per the interest calculation methods applicable to various types of accounts) so that the bank’s liability in this regard is fairly reflected in the total NDTL of the same fortnightly return. (23) ‘Scheduled Bank’ means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934. (24) ‘State Co-operative Bank’ shall mean the Principal Co-operative Society in a State, the primary object of which is the financing of other Co-operative Societies in the State: Provided that in addition to such Principal Society in a State, or where there is no such Principal Society in a State, the State Government may declare any one or more Co-operative Societies carrying on business in that State to be also or to be a State Co-operative Bank or State Co-operative Banks within the meaning of this definition; (25) ‘Time Deposits’ shall mean deposits other than demand deposits. (26) ‘Time Liabilities’ of a bank shall include those liabilities which are payable otherwise than on demand and shall include the following: fixed deposits, cash certificates, cumulative and recurring deposits, time liabilities portion of savings bank deposits, staff security deposits, margin held against letters of credit, if not payable on demand, deposits held as securities for advances which are not payable on demand, gold deposits. (27) All other expressions unless defined herein shall have the same meaning as have been assigned to them under the Banking Regulation Act or the Reserve Bank of India Act, or any statutory modification or re-enactment thereto or as used in commercial parlance, as the case may be.