The Reserve Bank of India issued amendment directions to its 2025 framework governing Local Area Banks’ Cash Reserve Ratio and Statutory Liquidity Ratio, with the changes effective immediately following recent amendments to banking laws and related regulations. The update broadens references to development financial institutions and revises regulatory reporting templates and certain classification language. The amendments insert references to “other development financial institutions” (as defined in section 2(cccii) of the Reserve Bank of India Act, 1934) into the relevant provision, remove a reference under the cash in hand category in the SLR-related reporting, and update Annex I (Form A) and Annex II (Form VIII) by substituting the list of named institutions with a broader set that includes Exim Bank, National Housing Bank, the National Bank, the Small Industries Bank, the National Bank for Financing Infrastructure and Development, and other development financial institutions. Form VIII also replaces “specified” with “notified”, deletes “from time to time”, and adds a new item for amounts deposited with the Reserve Bank under the Standing Deposit Facility Scheme.
Reserve Bank of India 2026-01-22
Reserve Bank of India amends Local Area Bank reserve requirement directions to update eligible institutions and add Standing Deposit Facility reporting
The Reserve Bank of India has amended its 2025 framework for Local Area Banks' Cash Reserve Ratio and Statutory Liquidity Ratio, effective immediately, to include broader references to development financial institutions and update regulatory reporting templates. Changes involve revising classification language, updating Annex I and II to include institutions like Exim Bank and National Housing Bank, and modifying Form VIII for new reporting requirements under the Standing Deposit Facility Scheme.