Reserve Bank of India (Rural Co-operative Banks – Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026
RBI notification RBI/2026-27/88 · 18 May 2026
RBI notification RBI/2026-27/88 · 18 May 2026
Summary
Check the official recordThe Reserve Bank of India amends the Investment Fluctuation Reserve requirements for Rural Co-operative Banks. Banks must maintain an Investment Fluctuation Reserve of at least 5 percent of the investment portfolio in the Current Category. Banks assess this requirement annually. The calculation uses the book value of investments in the Current Category on the balance sheet date. These directions take effect on May 18, 2026.
What you must do
Key dates
Who is affected
Thresholds
RBI/2026-27/88 DOR.MRG.REC.No.76/00-00-011/2026-27 May 18, 2026
Please refer to paragraph 115 of Reserve Bank of India (Rural Co-operative Banks - Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025, dated November 28, 2025, on Investment Fluctuation Reserve (IFR). In view of certain operational constraints being faced by banks in the maintenance of IFR, there is a need to amend the extant instructions.
Accordingly, in exercise of the powers conferred by Section 35A read with Section 56 of the Banking Regulation Act, 1949 (hereinafter called the Act) and all other laws enabling the Reserve Bank in this regard, the Reserve Bank, being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
(i) These Directions shall be called the Reserve Bank of India (Rural Co-operative Banks – Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026.
(ii) These Amendment Directions shall come into effect from the date of issue.
(i) Paragraph 115.(1) shall be substituted by the following, namely: -
"115.(1) An RCB shall maintain IFR of not less than 5 per cent of its investment portfolio classified under the Current Category. This minimum requirement shall be assessed annually and shall be computed with reference to the book value of its investments in the Current Category as of the balance sheet date.".
(Sunil T S Nair)
Chief General Manager