The Reserve Bank of India has amended its directions for small finance banks to exempt fresh Non-Resident External Rupee term deposits with a tenor of three years or more from cash reserve ratio and statutory liquidity ratio requirements, if those deposits are mobilized between June 19, 2026 and September 30, 2026. The measure also covers deposits renewed on maturity and took effect immediately. For CRR purposes, the exemption applies 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. The relief is limited to the original deposit amounts for as long as the deposits remain on the banks' books. Transfers from Non-Resident Ordinary accounts to NRE accounts do not qualify for the exemption. The amendment also updates the reporting framework by adding a specific disclosure line for these NRE term deposits in Form A.
Reserve Bank of India2026-06-19
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.