Era Presets
Bank Parameters
Net Demand & Time Liabilities (NDTL)
INR
₹1 Cr₹500 Cr₹1,000 Cr
CRR Rate
%
0%5%10%
SLR Rate
%
0%20%40%
Bank Rate (RBI)
%
1%8%15%
Actual Reserves Held
Cash with RBI (CRR)
Actual cash parked with RBI
SLR Assets (G-Sec / Gold)
Govt securities + gold value
Reserve Requirement Results
Required CRR
at 3.00% of NDTL
Required SLR
at 18.00% of NDTL
Lendable Resources
NDTL minus CRR & SLR
 Estimated Penal Interest (Fortnight)
₹0
Day 1: Bank Rate +3%  |  Days 2–14: Bank Rate +5%  |  On total shortfall amount
NDTL Allocation Breakdown

RBI requires 100% CRR maintenance on a 14-day fortnightly average. Daily balance can dip to 90% of the requirement, but the average across all days must be met. Use this table to plan day by day.

Day Date Cash Balance with RBI (₹)
Average Daily Balance: ₹0
Required CRR: ₹0

Understanding CRR, SLR and NDTL

What is Cash Reserve Ratio (CRR)?

The Cash Reserve Ratio (CRR) is the percentage of a bank's Net Demand and Time Liabilities (NDTL) that must be maintained as cash with the Reserve Bank of India. As of February 2026, the CRR stands at 3.00%. Banks earn zero interest on this balance, making it a direct and non-negotiable cost of funds.

What is Statutory Liquidity Ratio (SLR)?

The Statutory Liquidity Ratio (SLR) requires banks to maintain a minimum percentage of their NDTL in liquid assets — cash, gold, or approved government securities (G-Secs). The current SLR is 18.00%. Unlike CRR, G-Secs held for SLR earn market-linked interest, making SLR maintenance less punitive for banks.

What is NDTL?

Net Demand and Time Liabilities (NDTL) is the base figure on which both CRR and SLR are calculated. It includes all demand liabilities (current accounts, savings account demand portion, demand drafts) and time liabilities (FDs, RDs), minus inter-bank deposits to prevent double counting within the system.

NDTL = (Demand Liabilities + Time Liabilities + Other Liabilities) − Inter-bank Deposits

Required CRR    = NDTL × CRR%
Required SLR    = NDTL × SLR%
Lendable Resources = NDTL − Required CRR − Required SLR

Fortnightly Average Maintenance

CRR is not maintained on a strict daily basis. RBI requires banks to maintain the required CRR as a fortnightly average over a 14-day reporting cycle. The daily cash balance can fall as low as 90% of the required CRR, but the average across all 14 days must equal 100%. This flexibility lets treasury managers handle intra-fortnight cash flow mismatches without triggering daily penalties.

Penalty for Shortfall

If the fortnightly average falls short of the required CRR, penal interest is charged at Bank Rate + 3% for the first day and escalates to Bank Rate + 5% for each subsequent day in that fortnight. At the current Bank Rate of 5.50%, this means penalties of 8.50% and 10.50% respectively — applied on the shortfall amount, not the full NDTL.

Reading the Results

Required CRR is the cash you must park with RBI at the selected CRR rate. Required SLR is the minimum liquid assets you must hold. Lendable Resources is what remains after both reserve requirements — this is the actual deployable credit capacity of the bank. The penalty card appears only when actual reserves fall short of requirements and shows estimated penal interest for the full fortnight.

CRR & SLR Rate History in India — Key Milestones

Understanding how RBI CRR and SLR rates have evolved across monetary policy cycles helps banks and analysts model scenarios. The era presets in the calculator above are based on these key historical periods.

Period / Event CRR SLR Bank Rate Context
Feb 2026 (Current) 3.00% 18.00% 5.50% Accommodative stance, post rate-cut cycle
2020–21 (COVID Low) 3.00% 18.00% 4.00% Emergency liquidity support to banking system
2018–19 (Neutral) 4.00% 19.50% 6.25% Calibrated tightening, growth vs inflation balance
2012–13 (Tight Liquidity) 4.75% 23.00% 8.00% High inflation era, aggressive liquidity tightening
2008 (GFC Peak) 9.00% 25.00% 9.00% Pre-Global Financial Crisis peak; rapid cuts followed

Rates are indicative for respective periods. Use the era presets in the calculator to model each scenario instantly.

Impact of CRR Change on Lendable Resources

Every 1% change in CRR has a significant effect on how much a bank can lend. This table shows lendable resources at different CRR levels for a bank with ₹1,000 Cr NDTL, with SLR held constant at 18%.

CRR Rate Required CRR Required SLR Lendable Resources Change vs 3%
3.00% (Current) ₹30 Cr ₹180 Cr ₹790 Cr Baseline
3.50% ₹35 Cr ₹180 Cr ₹785 Cr −₹5 Cr
4.00% ₹40 Cr ₹180 Cr ₹780 Cr −₹10 Cr
4.75% ₹47.5 Cr ₹180 Cr ₹772.5 Cr −₹17.5 Cr
9.00% (2008) ₹90 Cr ₹250 Cr ₹660 Cr −₹130 Cr

Illustrative for ₹1,000 Cr NDTL. The 2008 row uses SLR 25%. System-wide impact is proportionally amplified across the full banking sector NDTL base.

Frequently Asked Questions

What is the current CRR rate in India 2026?

As of February 2026, the Cash Reserve Ratio is 3.00% per the RBI Monetary Policy Committee. Banks must maintain this percentage of their NDTL as zero-interest cash with the Reserve Bank of India. The rate can change at every bi-monthly MPC meeting.

What is the current SLR rate in India 2026?

The Statutory Liquidity Ratio is 18.00% as of February 2026. Banks maintain SLR in the form of cash, gold, or approved government securities. Unlike CRR, G-Secs held for SLR earn interest, making it significantly less punitive for bank profitability.

What is NDTL in banking?

Net Demand and Time Liabilities (NDTL) is the base on which CRR and SLR are calculated. It includes savings deposits, current accounts, FDs, RDs and other public deposits, minus money a bank has deposited with other banks. Inter-bank deposits are excluded to prevent double-counting the same money across the system.

How is CRR maintained on a fortnightly basis?

RBI allows banks to maintain CRR as a 14-day fortnightly average. The daily cash balance can fall to as low as 90% of the required CRR without triggering a penalty, but the average over the full fortnight must equal 100%. This gives treasury teams meaningful flexibility to manage intra-period cash flow without daily penalty exposure.

What is the penalty for CRR shortfall in India?

Penal interest applies at Bank Rate + 3% (currently 8.50%) for the first day of shortfall, escalating to Bank Rate + 5% (currently 10.50%) for each subsequent day in that fortnight. The penalty applies on the actual shortfall amount, not the full CRR requirement. Use the penalty estimator above for exact amounts.

What is the penalty for SLR shortfall?

SLR shortfalls attract penal interest at Bank Rate + 3% (currently around 8.50%). Unlike CRR, the SLR penalty rate does not escalate for subsequent days. However, repeated SLR violations attract regulatory scrutiny and action from RBI beyond just the financial penalty.

Do banks earn interest on CRR balances?

No. CRR balances held with the RBI earn zero interest. This is a real and direct cost to bank profitability — the higher the CRR, the more non-earning assets banks are forced to hold. SLR assets like government securities, on the other hand, earn market-linked coupon interest, making SLR maintenance far less damaging to net interest margins.

How does a CRR cut affect the economy?

A CRR reduction releases liquidity into the banking system, lowering cost of funds for banks and making more money available for lending. For every 25 bps CRR cut, RBI typically injects tens of thousands of crores into system liquidity. This can stimulate credit growth and economic activity but also carries inflationary risk if not well-calibrated. Check real-time inflation impact here.

What is the difference between CRR and SLR?

CRR must be maintained as pure cash with the RBI and earns no interest. SLR can be held in cash, gold, or government securities and can earn returns. CRR is primarily a monetary policy tool to control money supply; SLR ensures banks always hold liquid, safe assets to meet depositor obligations in a stress event. Both are calculated as a percentage of NDTL.