The Reserve Bank of India has amended its Priority Sector Lending Targets and Classification Directions to exclude advances extended in India against specified fresh Foreign Currency Non-Resident (Bank), or FCNR(B), and Non-Resident External rupee deposits from adjusted net bank credit (ANBC), the base used to calculate priority-sector lending targets. The change aligns the ANBC treatment with the previously granted cash reserve ratio and statutory liquidity ratio exemptions for these deposits and takes effect immediately. The exclusion covers advances against fresh or renewed FCNR(B) dollar deposits with tenors of three to five years mobilized from June 8 through Sept. 30, 2026, and fresh or renewed NRE term deposits with tenors of at least three years mobilized from June 19 through Sept. 30, 2026. The amount deducted from ANBC cannot exceed the deposits eligible for the reserve exemptions. The amendment also removes an earlier footnote prescribing a historical baseline methodology for calculating eligible incremental advances.
2026-08-07Reserve Bank of India
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.