RBI Cuts CRR by 100 Bps in Phases from Sep 2025

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  • Last Updated on 9 June, 2025

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RBI CRR cut 2025

Circular No. RBI/2025-26/46 DoR.RET.REC.23/12.01.001/2025-26, Dated 06.06.2025

The Reserve Bank of India (RBI) has announced a phased reduction of the Cash Reserve Ratio (CRR) for all banks by a total of 100 basis points. This strategic move aims to enhance liquidity in the banking system and support economic activity.

1. Scope of Reduction

The reduction will be implemented in four equal tranches of 25 basis points each, applied to the Net Demand and Time Liabilities (NDTL) of scheduled banks. This calibrated approach ensures a smooth transition and minimizes any potential disruption in the banking sector.

2. Revised CRR Requirements and Effective Dates

Banks are required to maintain the CRR as follows:

  • 3.75% of NDTL – Effective from the reporting fortnight beginning September 6, 2025
  • 3.50% of NDTL – Effective from October 4, 2025
  • 3.25% of NDTL – Effective from November 1, 2025
  • 3.00% of NDTL – Effective from November 29, 2025

3. Objective and Impact

This move is expected to enhance the lending capacity of banks by freeing up more funds for credit deployment. The gradual implementation is aimed at ensuring financial stability, while enabling the transmission of monetary policy more effectively in support of growth and investment.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied