The Reserve Bank of India has narrowed the deposit mobilization window for excluding specified nonresident deposit-backed advances from Adjusted Net Bank Credit, which banks use to calculate priority sector lending targets. Eligible deposits must now have been mobilized by August 31, 2026, rather than September 30, 2026, modifying the exclusion introduced in August 2026. The exclusion covers advances extended in India against fresh or renewed Foreign Currency Non-Resident Bank deposits with tenors of three to five years mobilized from June 8, 2026, and Non-Resident External Rupee term deposits of at least three years mobilized from June 19, 2026. The amount excluded from Adjusted Net Bank Credit cannot exceed the outstanding deposits eligible for cash reserve ratio and statutory liquidity ratio exemptions. The amendment takes effect immediately.
2026-09-11Reserve Bank of India
Reserve Bank of India shortens eligibility window for nonresident deposit-backed advances excluded from priority sector lending base
The Reserve Bank of India has moved the cutoff for eligible nonresident deposits underlying certain exclusions from Adjusted Net Bank Credit to August 31, 2026, from September 30, 2026. The exclusion applies to advances against qualifying Foreign Currency Non-Resident Bank and Non-Resident External Rupee deposits and is capped at the outstanding amount eligible for cash reserve ratio and statutory liquidity ratio exemptions.