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[BUSINESS] · India · 3 sources

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Part of situation: Reserve Bank of India banking regulations (4 clusters)

Reserve Bank of India tightens banking liquidity and forex rules

Reserve Bank of India Cash Reserve Ratio liquidity management foreign exchange derivatives banking regulation

The Reserve Bank of India (RBI) has introduced several measures to tighten liquidity and strengthen risk management within the banking sector. Effective from the fortnight beginning October 16, 2026, the central bank will increase the minimum daily Cash Reserve Ratio (CRR) maintenance requirement for scheduled banks from 90% to 99%. While the overall prescribed CRR rate remains unchanged, this shift reduces the flexibility banks have to manage daily cash balances.

In addition to CRR adjustments, the RBI has revised regulations for foreign exchange derivative contracts. The threshold for taking positions without established underlying exposure has been significantly lowered from USD 100 million to USD 5 million. Furthermore, authorized dealers are now prohibited from allowing the rebooking of cancelled INR-involving foreign exchange derivative contracts, though the rollover of contracts upon maturity remains permitted.

To further manage liquidity, the RBI announced an open market sale of government securities valued at ₹25,000 crore, scheduled for October 13, aimed at absorbing excess funds from the financial system.

Entities

Reserve Bank of India

Claims

What the coverage asserts, and how many sources carry each claim.

  • [● 2 SOURCES] The RBI is increasing the minimum daily Cash Reserve Ratio (CRR) maintenance requirement for scheduled banks from 90% to 99%. desitalkchicago.com · connectgujarat.com
  • [○ 1 SOURCE] Authorized dealers are prohibited from allowing users to rebook cancelled INR-involving foreign exchange derivative contracts. taxguru.in
  • [○ 1 SOURCE] The RBI reduced the threshold for taking foreign exchange derivative positions without underlying exposure from USD 100 million to USD 5 million. taxguru.in
  • [○ 1 SOURCE] The RBI scheduled an open market sale of government securities worth ₹25,000 crore for October 13 to absorb excess liquidity. connectgujarat.com
  • [● 2 SOURCES] The new daily CRR maintenance requirement takes effect from the fortnight beginning October 16, 2026. desitalkchicago.com · connectgujarat.com

Sources

RBI raises banks’ daily minimum CRR maintenance requirement to 99% from 90% [desitalkchicago.com]
RBI Tightens INR Forex Derivative Rebooking Rules, Cuts Unhedged Position Threshold to USD 5 Million [taxguru.in]
RBI Tightens Cash Rules for Banks: Daily CRR Requirement Raised to 99% From October 16 [connectgujarat.com]