The Reserve Bank of India amended its directions for small finance banks to temporarily exempt qualifying Non-Resident (External) Rupee term deposits from cash reserve ratio and statutory liquidity ratio requirements. The measure applies to deposits with tenors of at least three years that are newly mobilized or renewed between June 19 and Sept. 30, 2026, further easing the regulatory treatment of these deposits after the RBI temporarily lifted related deposit rate restrictions. The reserve exemption applies to the original deposit amount for as long as it remains on the bank’s books. Cash reserve ratio relief begins with the reporting fortnight starting July 16, 2026, based on net demand and time liabilities as of June 30. Transfers from Non-Resident (Ordinary) accounts to NRE accounts do not qualify.
2026-06-19Reserve Bank of India
Reserve Bank of India exempts small finance banks' qualifying NRE term deposits from CRR and SLR until September 30 2026
The Reserve Bank of India has given small finance banks a temporary CRR and SLR exemption for fresh NRE term deposits of three years or more raised between June 19, 2026 and September 30, 2026, including renewals on maturity. The CRR relief starts from the reporting fortnight beginning July 16, 2026 and applies only to the original deposit amounts. Transfers from NRO accounts to NRE accounts are excluded.