The Reserve Bank of India (RBI) on November 28, 2025 issued the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025, which prescribe the CRR and SLR regime specifically for Small Finance Banks (SFBs). The Directions define key terms (NDTL, approved securities, deemed cash, demand/time liabilities), set out computation procedures for CRR and SLR, reporting formats (Form A, Form VIII), maintenance and apportionment rules, treatment of encumbered/unencumbered securities, and the framework for penalties and annexures.
They require SFBs to maintain and report CRR and SLR fortnightly, specify eligible SLR assets and exclusions, explain apportionment of savings into demand/time liabilities, and detail what constitutes cash and deemed cash for maintenance purposes. The Directions also cover operational items like treatment of encumbered securities, use of SLR for liquidity facilities (MSF, FALLCR), and conversion rates for certain items.
Applicability is limited to Small Finance Banks, with references to statutory provisions under the RBI Act and Banking Regulation Act; the Directions come into force immediately and include annexes with templates and return formats for operational compliance and supervisory reporting.
[Notification No. RBI/DOR/2025-26/181]
