RBI to raise banks' minimum daily cash reserves from 90% to 99% of the required amount

The Economic Times reports that the RBI will raise the minimum share of required cash reserves banks must hold each day from 90% to 99%, starting with the fortnight beginning October 16, 2026. The cash reserve ratio itself stands at 3% of deposits. The paper says the change limits banks' ability to make up for lower balances later in the fortnight and aims to drain surplus liquidity from the banking system.