The Reserve Bank of India has issued the Reserve Bank of India (Local Area Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Amendment Directions, 2025 to align the CRR and SLR framework with the changes introduced by the Banking Laws (Amendment) Act, 2025. A key revision is the updated definition of “fortnight,” now fixed as the 1st–15th and 16th–end of every month, effective December 15, 2025. Consequently, all CRR/SLR maintenance requirements and reporting formats in Form A and Form VIII have been revised. References to “Friday” across multiple paragraphs have been substituted with “day,” provisional and final returns have been eliminated, paragraph 30 deleted, and a single consolidated Form A and Form VIII—with new return codes—must now be submitted exclusively through the CIMS portal using dual digital signatures. Updated timelines and terminology have also been incorporated across Annexes I and II.
Transitional arrangements require Local Area Banks (LABs) to maintain CRR and SLR for the fortnights December 16–31, 2025 and January 1–15, 2026 based on NDTL as on November 28 and December 15, 2025, respectively. During the transition period of December 13–15, 2025, LABs must maintain CRR and SLR based on NDTL as on November 28, 2025 and ensure a minimum CRR of 100% of the requirement. Banks must also file Form A for December 12, 2025 under the existing structure and submit Form VIII for December 2025 using both old and new return codes. Conforming amendments have been made in paragraph 23(3)(iii) and across annexes to reflect updated terminology relating to State Government Securities and fortnight-end reporting.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13229&Mode=0
