# Reserve Bank of India banking regulations > Live situation record from CLSTR: https://clstr.news/situations/reserve-bank-of-india-banking-regulations > Updated: 2026-10-23T05:30:01.000Z. Sources: 10. Developments: 4. The Reserve Bank of India (RBI) has implemented a series of regulatory changes affecting bank shareholding, liquidity, and foreign exchange management. To simplify shareholding, the RBI eased rules for eligible institutional investors, including mutual funds, insurance companies, and pension funds. Under the amended framework, these entities can seek a one-time approval for subsequent acquisitions of up to 10 per cent of a bank’s paid-up share capital or voting rights. This removes the previous requirement to obtain fresh approval if holdings had previously dropped below 5 per cent. These changes apply to commercial, small finance, payments, and local area banks. While subsequent acquisitions are streamlined, prior approval remains mandatory for initial major stakes, and investors must report holdings to the RBI if they cross the 5 per cent threshold. To manage liquidity and mitigate rupee volatility, the RBI increased the minimum daily Cash Reserve Ratio (CRR) maintenance requirement from 90% to 99%. While the statutory CRR remains at 3 per cent, this is expected to withdraw between ₹400 billion and ₹800 billion from the banking system. To curb speculative positions, the RBI lowered the threshold for foreign exchange derivative transactions without established underlying exposure from $100 million to $5 million, prohibited the rebooking of cancelled rupee-linked contracts, and introduced a Foreign Exchange Risk Reserve (FERR) requiring a 20 per cent cash reserve for certain contracts exceeding $2 million. Additionally, the RBI issued new directions to align leverage-ratio norms with 2017 Basel Committee standards. Effective April 1, 2027, minimum leverage ratios will be set at 4% for domestic systemically important banks (D-SIBs) and 3.5% for other banks. ## Claims - The RBI is increasing the minimum daily Cash Reserve Ratio (CRR) maintenance requirement for scheduled banks from 90% to 99%. (corroborated by 2 sources) - The new daily CRR maintenance requirement takes effect from the fortnight beginning October 16, 2026. (corroborated by 2 sources) - The RBI reduced the threshold for taking foreign exchange derivative positions without underlying exposure from USD 100 million to USD 5 million. (single source) - The RBI scheduled an open market sale of government securities worth ₹25,000 crore for October 13 to absorb excess liquidity. (single source) - Authorized dealers are prohibited from allowing users to rebook cancelled INR-involving foreign exchange derivative contracts. (single source) ## Timeline ### 2026-10-23: Reserve Bank of India revises bank leverage ratio norms The Reserve Bank of India will implement new bank leverage ratio norms on April 1, 2027, setting minimum requirements of 4% for domestic systemically important banks and 3.5% for others. 2 sources. https://clstr.news/cluster/reserve-bank-of-india-revises-bank-leverage-ratio-norms ### 2026-10-11: Reserve Bank of India implements measures to manage rupee and liquidity The Reserve Bank of India is implementing new measures to manage rupee volatility and liquidity, including higher daily CRR maintenance requirements and new foreign exchange derivative regulations. 5 sources. https://clstr.news/cluster/reserve-bank-of-india-implements-measures-to-manage-rupee-and-liquidity ### 2026-10-09: Reserve Bank of India tightens banking liquidity and forex rules The Reserve Bank of India is tightening banking regulations by raising daily CRR maintenance to 99% and reducing the unhedged forex derivative threshold to USD 5 million. 3 sources. https://clstr.news/cluster/reserve-bank-of-india-tightens-banking-liquidity-and-forex-rules ### 2026-10-01: Reserve Bank of India eases bank shareholding rules for institutional investors The Reserve Bank of India has eased bank shareholding rules, allowing eligible mutual funds, insurers, and pension funds to obtain one-time approval for holdings up to 10 per cent. 3 sources. https://clstr.news/cluster/reserve-bank-of-india-eases-bank-shareholding-rules-for-institutional-investors --- Cite as: Reserve Bank of India banking regulations. CLSTR, https://clstr.news/situations/reserve-bank-of-india-banking-regulations