RBI tightens liquidity with 99 percent daily CRR rule after first repo rate hike in two and a half years

RBI tightens liquidity with 99 percent daily CRR rule after first repo rate hike in two and a half years

The Reserve Bank of India, on 10 October 2026, raised the minimum daily maintenance requirement for the cash reserve ratio (CRR) from 90 percent to 99 percent of the prescribed requirement, effective from the fortnight beginning 16 October 2026. The move follows the RBI's decision earlier in the same week to raise the policy repo rate by 25 basis points to 5.50 percent, its first increase in two and a half years. The RBI also announced an open market operation sale of government securities worth Rs 25,000 crore on 13 October 2026 to absorb surplus liquidity from the banking system.