The Reserve Bank of India has amended the cash reserve ratio and statutory liquidity ratio rules for rural co-operative banks to exempt fresh Foreign Currency Non-Resident Bank deposits with tenors of three to five years if they are mobilised between June 8, 2026 and September 30, 2026. The change follows the policy decision in the Governor’s June 5 statement to introduce a US Dollar-Rupee swap facility for fresh FCNR(B) dollar funds. Eligible deposits include those renewed on maturity. The cash reserve ratio exemption applies from the reporting fortnight beginning July 1, 2026, based on the net demand and time liabilities computation as of June 15, 2026, and continues in subsequent fortnights. The relief is available on the original deposit amounts for as long as those deposits remain on banks’ books, and the amendment took effect immediately.
Reserve Bank of India2026-06-08
Reserve Bank of India exempts fresh three to five year FCNR deposits mobilised by rural co-operative banks from CRR and SLR through 30 September 2026
The Reserve Bank of India has amended cash reserve ratio and statutory liquidity ratio rules for rural co-operative banks to exempt fresh Foreign Currency Non-Resident Bank deposits with tenors of three to five years mobilised between June 8, 2026 and September 30, 2026, including renewals. The exemption, which applies to original deposit amounts for as long as they remain on banks’ books, follows the policy decision to introduce a US Dollar-Rupee swap facility for fresh FCNR(B) dollar funds and takes effect from the reporting fortnight beginning July 1, 2026.