The Reserve Bank of India (RBI), exercising powers under the RBI Act, 1934 and the Banking Regulation Act, 1949, has notified a phased reduction in the Cash Reserve Ratio (CRR) for banks.
In partial modification of its earlier notification dated December 6, 2024, the average CRR banks are required to maintain will be reduced to 3.75%, 3.5%, 3.25%, and 3.0% of their net demand and time liabilities (NDTL), effective from the reporting fortnights beginning September 6, October 4, November 1, and November 29, 2025, respectively.