The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Local Area Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.
The following has been stated: -
•The RBI has issued the Local Area Banks – CRR and SLR Directions, 2025, effective immediately, applicable to all LABs.
•It defines key terms like NDTL, demand/time liabilities, approved securities, and assets with the banking system.
•LABs must maintain CRR in India through cash or balances with the RBI, starting at 3.75% and gradually reducing to 3% of NDTL between September and November 2025.
•Computation of NDTL includes liabilities to the banking system, others, and certain borrowings, with RBI having final authority on classification.
•These Directions shall come into force with immediate effect.
[Notification No.: RBI/DOR/2025-26/226 DOR.RET.REC.145/12-01-001/2025-26]
