Cash reserve ratio (CRR)
CRR = Cash Reserve Ratio- How often
- At policy meetingsAnnounced with RBI policy decisions
- Next release
- Fri 4 DecIn 22 days · 10:00 AM
Cut by 25 bp, effective 29 November 2025.
Events on this chart
Source: RBI, released 6 Jun 2025 · Chart: Clarity UPSC
- Previous
- 3.25%1 Nov 2025
- Highest
- 6.00%24 Apr 2010
- Lowest
- 3.00%28 Mar 2020
19 readings since 17 Jan 2009.
Story
The share of deposits a bank must keep as cash with the Reserve Bank of India. Banks earn no interest on it.
What is happening now As of 29 Nov 2025
The Cash Reserve Ratio (CRR) has been 3% of Net Demand and Time Liabilities (NDTL) since the fortnight that began on 29 November 2025. That was the last of four cuts of 0.25 percentage point each, announced on 6 June 2025, which took the ratio down from 4%. A year earlier, in November 2024, it was 4.50%.
The Reserve Bank of India (RBI) said the cuts would release about ₹2.5 lakh crore to banks by December 2025. It wanted to give banks lasting funds and lower their cost of funds, so that its repo rate cuts would pass on to loan rates. The RBI's policy decisions of 7 October 2026 made no change to the CRR, and its website lists it at 3% on 12 November 2026.
Why it matters
The Cash Reserve Ratio (CRR) decides how much of every deposit a bank can neither lend nor invest. This cash sits with the Reserve Bank of India (RBI) and earns nothing. So a higher CRR leaves banks less money to lend and raises their cost of funds, which can push loan rates up. A cut does the reverse.
The RBI uses the CRR to add money to the banking system, or take it out, for a long period. The repo rate changes the price of money; the CRR changes how much money banks have to lend. Borrowers feel the result in the cost and availability of loans.
What it is
Every bank must keep part of its deposits with the Reserve Bank of India (RBI) as a cash balance. The required share is the Cash Reserve Ratio (CRR). It is measured on the bank's Net Demand and Time Liabilities (NDTL), which are mostly deposits.
A higher CRR leaves banks less money to lend, so it draws money out of the economy. A cut releases money for lending.
The RBI sets the CRR under Section 42 of the RBI Act, 1934. It pays no interest on these balances.
Read this number
- The publisher
- The Reserve Bank of India is India's central bank. It manages money supply, bank regulation, the rupee and the country's foreign exchange reserves.
- Kept with
- The RBI, as cash
- Interest paid
- None
- Law
- RBI Act, 1934, Section 42
- Measured on
- Net demand and time liabilities (NDTL)
- Release rule
- Announced with RBI policy decisions; takes effect from a stated fortnight
Terms on this page (3)
- NDTL
- Net Demand and Time Liabilities
- RBI
- Reserve Bank of India
- SLR
- Statutory Liquidity Ratio
History
- 2025Cut from 4% to 3% in four steps of 0.25 percentage point, taking effect between September and November 2025.
Readings
| Period | Value | Status | Released |
|---|---|---|---|
| 29 Nov 2025 | 3.00% | Final | 6 Jun 2025 |
| 1 Nov 2025 | 3.25% | Final | 6 Jun 2025 |
| 4 Oct 2025 | 3.50% | Final | 6 Jun 2025 |
| 6 Sep 2025 | 3.75% | Final | 6 Jun 2025 |
| 28 Dec 2024 | 4.00% | Final | 6 Dec 2024 |
| 14 Dec 2024 | 4.25% | Final | 6 Dec 2024 |
| 21 May 2022 | 4.50% | Final | 4 May 2022 |
| 22 May 2021 | 4.00% | Final | 5 Feb 2021 |
| 27 Mar 2021 | 3.50% | Final | 5 Feb 2021 |
| 28 Mar 2020 | 3.00% | Final | 27 Mar 2020 |
| 9 Feb 2013 | 4.00% | Final | 9 Feb 2013 |
| 3 Nov 2012 | 4.25% | Final | 3 Nov 2012 |
For UPSC
Know how the Cash Reserve Ratio (CRR) differs from the Statutory Liquidity Ratio (SLR): CRR is kept as cash with the Reserve Bank of India (RBI) and earns nothing; SLR assets stay with the bank in cash, gold or approved securities.