The Reserve Bank of India has amended its cash reserve ratio and statutory liquidity ratio directions for regional rural banks to exempt fresh Foreign Currency Non-Resident (Bank), or FCNR(B), deposits with tenors of three to five years from both requirements when mobilised between June 8, 2026 and September 30, 2026. The relief also covers deposits renewed at maturity and takes effect immediately. For CRR, the exemption applies from the reporting fortnight beginning July 1, 2026, based on net demand and time liabilities computed as of June 15, 2026, and continues in subsequent fortnights. It is available on the original deposit amount for as long as the deposit remains on the bank's books. The amendment also updates the related SLR cross-reference and Form A reporting entries, in line with the Governor's June 5 decision to introduce a US Dollar-Rupee swap facility for fresh FCNR(B) dollar funds.
Reserve Bank of India2026-06-08
Reserve Bank of India exempts fresh three to five year Foreign Currency Non Resident Bank deposits at regional rural banks from CRR and SLR until September 30 2026
The Reserve Bank of India has amended its cash reserve ratio and statutory liquidity ratio directions for regional rural banks to exempt fresh and renewed Foreign Currency Non-Resident (Bank) deposits with tenors of three to five years, mobilised between June 8 and September 30, 2026, from both requirements. The exemption applies from the reporting fortnight beginning July 1, 2026 on the original deposit amount for as long as it remains on the bank’s books, and the amendment also updates related statutory liquidity ratio cross-references and Form A reporting in line with the Governor’s June 5 decision to introduce a US Dollar-Rupee swap facility.