Regulatory Alerts2026-01-26 | DMMD Circular No. 01 of 2026 of 2026Added · Updated
Maintenance of Cash Reserve Requirement (CRR)
The average cash reserve requirement is reduced to 5%, subject to a daily minimum requirement of 3%. These revised requirements apply to all banks, including Islamic banks and Islamic banking branches, and become effective on January 30, 2026. All other existing instructions regarding the subject remain unchanged.
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DMMD Circular No. 01 of 2026
Maintenance of Cash Reserve Requirement (CRR)
January 26, 2026
3537
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.
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.
All other instructions on the subject shall remain unchanged.
Yours sincerely,
Dr. Mahmood ul Hasan Khan Director
Home — Circulars — DMMD Circular No. 01 of 2026
Maintenance of Cash Reserve Requirement (CRR)
January 26, 2026