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HomeNotificationRBI Announces Phased Reduction in CRR from September 2025

RBI Announces Phased Reduction in CRR from September 2025

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The Reserve Bank of India (RBI) Announced Phased Reduction in CRR from September 2025.

In a key regulatory update aimed at managing banking system liquidity, the Reserve Bank of India (RBI) has announced a phased reduction in the Cash Reserve Ratio (CRR) to be maintained by all scheduled banks. The new notification, issued on June 6, 2025, modifies the earlier directive dated December 6, 2024.

Under the revised schedule announced by the Reserve Bank of India (RBI), banks will be required to maintain progressively lower average Cash Reserve Ratio (CRR) levels based on their Net Demand and Time Liabilities (NDTL).

Starting from the reporting fortnight beginning September 6, 2025, the CRR will be 3.75%. It will then be reduced to 3.5% from October 4, 2025, followed by 3.25% from November 1, 2025, and finally reach 3.0% from November 29, 2025. This phased reduction aims to ease liquidity in the banking system and support credit growth.

This progressive relaxation of CRR requirements is likely aimed at injecting additional liquidity into the banking system to support credit growth and economic momentum in the latter half of FY 2025–26.

Notification Details

Notification No. : F. No. DoR.RET.REC.24/12.01.001/2025-26

Date: 06/06/2025

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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