RBI Notifies Revised Cash Reserve Ratio (CRR) Requirements:

RBI Notifies Revised Cash Reserve Ratio (CRR) Requirements The Reserve Bank of India (RBI) has released an official notification dated June 06, 2025, published in the Gazette of India. The notification is to inform all the banks that the Central Bank has introduced few partial modifications in the previous notification (DoR.RET.REC.53/12.01.001/2024-25) dated December 06, 2024, in exercise of its powers granted under the sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 and sub-section (1) of Section 18 of the Banking Regulation Act, 1949 (10 of 1949), read with Section 56 thereof.

Also Read

RBI Issues Guideline on Pre-payment Charges on Loans to Make Prepayment Easier

The Reserve Bank of India (RBI) has issued a new rule. The new rule is regarding the average Cash Reserve Ratio (CRR) that every bank is required to keep with the central bank (3.75 per cent, 3.5 per cent, 3.25 per cent and 3.0 per cent), over four different time periods starting from September 2025. Here is how the new CRR percentages will be applied:

Effective Date (Fortnight)	New CRR Rate
From September 6, 2025	3.75%
From October 4, 2025	3.50%
From November 1, 2025	3.25%
From November 29, 2025	3.00%

This decision is taken using the powers granted to the RBI under:

• Section 42(1) of the Reserve Bank of India Act, 1934: This allows the RBI to ask banks to keep a certain percentage of their deposits with it as reserves.
• Section 18(1) of the Banking Regulation Act, 1949, along with Section 56: These sections extend similar rules to co-operative banks too.

So, under these legal powers, the RBI can amend the CRR requirement from time to time.

Also Read

RBI Updates FEMA: Offshore Vessels Must Be Re-Imported

What is CRR (Cash Reserve Ratio)? The Cash Reserve Ratio (CRR) is a percentage of deposited money by the customers that a bank is required to keep with the Central Bank in the form of cash. This money cannot be used by banks for lending or investments. It is a tool used by the RBI to control the money supply in the economy. For instance, if a bank has Rs. 1000 crore in deposits and the CRR is 4%, the bank must keep Rs. 40 crore with the RBI.