Business
RBI raises banks' daily cash reserve requirement to 99% from 90%
The Reserve Bank of India announced that from October 16, 2026, scheduled banks must maintain a daily cash reserve of 99% of deposits, up from the current 90%.
The Reserve Bank of India (RBI) has revised the Daily Maintenance Requirement (DMR) for scheduled banks, increasing the minimum daily cash reserve ratio from 90% to 99%. The change is part of the RBI's ongoing efforts to tighten liquidity management standards for the banking sector.
Under the new rule, banks will be required to hold a cash reserve equal to 99% of their scheduled deposits on a daily basis, a significant rise from the existing 90% threshold. The RBI has specified that this amendment will come into force on October 16, 2026.
The RBI communicated the amendment through an official notice, confirming the effective date and the revised percentage, and expects banks to comply from the stipulated date.
Under the new rule, banks will be required to hold a cash reserve equal to 99% of their scheduled deposits on a daily basis, a significant rise from the existing 90% threshold. The RBI has specified that this amendment will come into force on October 16, 2026.
The RBI communicated the amendment through an official notice, confirming the effective date and the revised percentage, and expects banks to comply from the stipulated date.