The Reserve Bank of India has issued a third amendment to its 2025 directions on cash reserve ratio and statutory liquidity ratio for regional rural banks, exempting fresh Non-Resident External Rupee term deposits with a tenor of three years or more from CRR and SLR maintenance. The exemption covers deposits mobilized between June 19, 2026 and September 30, 2026, including deposits renewed on maturity, and the amendment takes effect immediately. For CRR purposes, the exemption applies from the reporting fortnight beginning July 16, 2026, based on net demand and time liabilities as of June 30, 2026, and continues in subsequent fortnights. It applies only to the original deposit amounts for as long as the deposits remain on banks' books. Transfers from Non-Resident Ordinary accounts to NRE accounts do not qualify for the exemption. The amendment also updates the reporting format to add a specific line item for these NRE term deposits.
Reserve Bank of India2026-06-19
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.