The Reserve Bank of India amended its priority sector lending directions with immediate effect to exclude certain advances extended in India against eligible nonresident deposits from adjusted net bank credit when calculating priority sector lending targets. The exclusion covers advances against fresh Foreign Currency Non-Resident (Bank) deposits with tenors of three to five years mobilized from June 8 through Sept. 30, 2026, and Non-Resident (External) Rupee term deposits with tenors of at least three years mobilized from June 19 through Sept. 30, 2026. Renewals upon maturity are included, provided the deposits qualify for the applicable cash reserve ratio and statutory liquidity ratio exemptions. The excluded amount may not exceed the eligible deposits, and the amendment removes a legacy calculation based on 2013-14 reference dates.
Reserve Bank of India2026-08-07
Reserve Bank of India excludes eligible nonresident deposit-backed advances from adjusted net bank credit for priority sector targets
The Reserve Bank of India has excluded advances against specified nonresident deposits from adjusted net bank credit for priority sector lending targets. The measure covers eligible Foreign Currency Non-Resident (Bank) and Non-Resident (External) Rupee deposits mobilized through Sept. 30, 2026, with the exclusion capped at the amount qualifying for cash reserve ratio and statutory liquidity ratio exemptions.