The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Payments Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 for public comments. Framed under Section 35A of the Banking Regulation Act, 1949 and Sections 18, 24 of the same Act, along with Section 42 of the RBI Act, 1934, the consolidates and streamlines the regulatory provisions governing maintenance of CRR and SLR by Payments Banks (PBs). It aims to ensure consistency in liquidity management, promote monetary stability, and provide a uniform framework for reserve computation, reporting, and compliance among PBs.
The directions mandate every Payments Bank to maintain a Cash Reserve Ratio (CRR) with the RBI, equivalent to a prescribed percentage of its Net Demand and Time Liabilities (NDTL). The CRR requirement is proposed to be progressively reduced to 3.0% by November 2025, with a minimum of 90% of the required CRR to be maintained daily. The also outlines computation norms for NDTL, detailing inclusions, exclusions, and exemptions, and prescribes that PBs maintain statutory returns in Form A for CRR and Form VIII for SLR. Additionally, it provides clarity on “approved securities,” including government securities, treasury bills, and state development loans, which qualify for SLR purposes.
Further, the directions cover exemptions from CRR and SLR maintenance—such as liabilities relating to Offshore Banking Units (OBUs), IFSC Banking Units (IBUs), and funds borrowed under market repo against government securities. Detailed reporting procedures, computation methods, and penalty provisions are also laid down to ensure accuracy and compliance. The RBI has clarified that no interest will be paid on CRR balances maintained with it. The thus seeks to enhance transparency, uniformity, and prudential regulation in liquidity management by Payments Banks.
These Directions shall come into force with immediate effect.
[Notification No. RBI/DOR/2025-26/210 DOR.RET.REC.129/12-01-001/2025-26]
