The Reserve Bank of India has temporarily exempted regional rural banks from cash reserve ratio and statutory liquidity ratio requirements on fresh Non-Resident (External) Rupee term deposits with tenors of at least three years, including renewals at maturity, mobilized from June 19 through September 30, 2026. The measure complements the RBI’s recent temporary removal of certain interest rate limits on longer-tenor NRE deposits for these banks over the same end period. The reserve exemption applies to the original deposit amount for as long as it remains on the bank’s books. For cash reserve ratio purposes, it takes effect from the reporting fortnight beginning July 16, 2026, based on net demand and time liabilities as of June 30, and continues in subsequent fortnights. Transfers from Non-Resident (Ordinary) accounts to NRE accounts do not qualify.
2026-06-19Reserve Bank of India
Reserve Bank of India exempts new long term NRE deposits at regional rural banks from CRR and SLR until September 30 2026
The Reserve Bank of India has amended its regional rural bank liquidity directions to exempt fresh NRE term deposits of three years or more from CRR and SLR maintenance if they are mobilized between June 19, 2026 and September 30, 2026. The measure takes immediate effect, with the CRR exemption applying from the reporting fortnight beginning July 16, 2026, and excludes transfers from NRO accounts to NRE accounts.