Regulatory Alerts2026-01-26 | DMMD Circular No. 01Maintenance of Cash Reserve Requirement (CRR)
The Domestic Market and Monetary Management Department has reduced the average cash reserve requirement for all banks, including Islamic banking branches, to 5 percent with a daily minimum of 3 percent. This adjustment, effective January 30, 2026, responds to an improved macroeconomic environment and aims to enhance private sector lending capacity. All existing instructions regarding statutory cash reserves remain unchanged under this directive.
Circulars/Notifications -
Domestic Market & Monetary Management Department
DMMD Circular No. 01 of 2026
January 26, 2026
The Presidents/Chief Executive Officers All Banks including Islamic Banks and Islamic Banking Branches
Dear Sirs/Madams,
Maintenance of Cash Reserve Requirement (CRR)
Please refer to DMMD Circular No. 04 dated March 08, 2018 and DMMD Circular No. 20 of 2021 dated November 13, 2021 regarding Statutory Cash Reserve Requirement.
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In the wake of improved macroeconomic environment and to enhance banks’ capacity for lending to the private sector, it has been decided to reduce the average cash reserve requirement to 5% subject to a daily minimum requirement of 3%. The revised requirements will be effective from January 30, 2026.
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All other instructions on the subject shall remain unchanged.
Yours Sincerely,
Sd/
(Dr. Mahmood ul Hasan Khan) Director
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