The Reserve Bank of India has amended its directions on cash reserve ratio and statutory liquidity ratio to exempt fresh Non-Resident External Rupee term deposits with a tenor of three years or more from both requirements. The relief applies to deposits mobilized by banks between June 19, 2026 and Sept. 30, 2026, including deposits renewed on maturity, and took effect immediately. For cash reserve ratio purposes, the exemption starts from the reporting fortnight beginning July 16, 2026, based on net demand and time liabilities computed as of June 30, 2026, and continues in subsequent fortnights. It applies only to the original deposit amounts for as long as those deposits remain on bank balance sheets. Transfers from Non-Resident Ordinary accounts to Non-Resident External accounts do not qualify. The amendment also updates the relevant reporting framework under Form A to add a specific line item for these NRE term deposits.
Reserve Bank of India2026-06-19
Reserve Bank of India exempts fresh NRE term deposits of at least three years from CRR and SLR until Sept. 30, 2026
The Reserve Bank of India has exempted fresh Non-Resident External Rupee term deposits of three years or more from cash reserve ratio and statutory liquidity ratio requirements if they are mobilized between June 19, 2026 and Sept. 30, 2026. Renewed deposits are included, but transfers from Non-Resident Ordinary accounts to Non-Resident External accounts are excluded. For cash reserve ratio purposes, the exemption begins from the reporting fortnight starting July 16, 2026.