Urban Co-operative Banks Cash Reserve Ratio and Statutory Liquidity Ratio Directions

RBI/DOR/2025-26/274
DOR.RET.REC.193/12-01-001/2025-26
November 28, 2025
Previous Versions

Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on June 19, 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
Annex III

In exercise of the powers conferred by Section 35A read with Section 56 of the Banking Regulation Act, 1949, and pursuant to Section 42 (1) of the Reserve Bank of India Act, 1934 and Sections 18, 24 and 56 of Banking Regulations 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 (Urban Co-operative 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 Urban Co-operative Banks (hereinafter collectively referred to as ‘banks’ or ‘UCBs’ and individually as a ‘bank’ or ‘UCB’).

In this context, ‘Urban Co-operative Banks’ shall mean Primary Co-operative Banks as defined under section 5(ccv) read with section 56 of the Banking Regulation Act, 1949.

4. The maintenance of Cash Reserve Ratio (CRR) shall be reported to the RBI under the following statutory returns:

(1) Form B Return for Scheduled Co-operative Banks.

(2) Form I Return for non-scheduled Co-operative Banks under Section 18 of the Banking Regulation Act, 1949, read with Section 56 thereof.

5. The maintenance of Statutory Liquidity Ratio (SLR) shall be reported to RBI under the statutory return Form I Return (for SLR) for all Co-operative Banks under Section 24 of the Banking Regulation Act, 1949, read with Section 56 thereof.

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 B Return, banks should report the total investment in approved securities as per it’s 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:

(i) 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;

(ii) 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;

(iii) Securities acquired by banks under RBI-LAF and market repo transactions.

(c) Unencumbered approved securities to be valued on the basis of the method of valuation determined by the Reserve Bank.

(d) ‘Unencumbered approved securities’ of a co-op. bank shall include its approved 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.

(4) Assets with the 'Banking System' in India comprise:

(i) Balances with the 'Banking System' in current accounts (a) with public sector banks and (b) with all other banks and notified financial institutions;

(ii) Balances with banks and notified financial institutions, in all other accounts,

(iii) Funds made available to the 'Banking System' by way of loans or deposits repayable at call or short notice of a fortnight or less;

(iv) Loans, other than 'Money at call and short notice' made available to the 'banking system'; and

(v) Any other amounts due from the 'Banking System' which cannot be classified under any of the above items, for example in the case of inter-bank remittance facility scheme, as on date, the total amount held by a bank with other banks (in transit or other account) would be shown here as such sums cannot be constructed as 'balances' or 'call money' or 'advances'.

(vi) In this context, it may be clarified, that if a bank has lodged securities with another bank for borrowal arrangements, then such securities or the unencumbered position of the same should not be shown by the borrowing bank as 'assets' with 'Banking System'. Similarly, the bank which has received the securities should not show them as 'other liabilities', to the 'Banking System'.

(vii) Currency and rupee notes and coins held as till money should be shown as cash in India (i.e. cash in hand). However, currencies of foreign countries held with a bank should not be included.

Note:

(a) Lending by the UCB to the following financial institutions in the term money market cannot be reckoned as assets with the 'Banking System'. Hence, these borrowings cannot be netted against the liabilities towards the 'Banking System'.

• EXIM Bank
• NABARD
• SIDBI
• IFCI
• IIBI

(b) The borrowing of the UCB other than refinance from these financial institutions should form part of liabilities to others and therefore, form part of net demand and time liabilities for the purpose of reserve requirements.