The Reserve Bank of India has amended its directions for urban co operative banks to exempt fresh Foreign Currency Non Resident Bank dollar deposits from cash reserve ratio and statutory liquidity ratio requirements. The exemption applies to deposits with a minimum tenor of three years and a maximum tenor of five years, including deposits renewed at maturity, if they are mobilised between June 8, 2026 and September 30, 2026. The change takes immediate effect and follows the Governor’s June 5 decision to introduce a USD-INR swap facility for such funds. For CRR purposes, the exemption applies from the reporting fortnight beginning July 1, 2026, based on net demand and time liabilities as on June 15, 2026, and continues in subsequent fortnights. It is available on the original deposit amounts for as long as the deposits remain on the banks’ books.
Reserve Bank of India2026-06-08
Reserve Bank of India exempts urban co operative banks’ fresh FCNR B dollar deposits from CRR and SLR until September 30 2026
The Reserve Bank of India has amended directions for urban co-operative banks to exempt fresh Foreign Currency Non Resident Bank dollar deposits from cash reserve ratio and statutory liquidity ratio requirements. The exemption covers deposits of three to five years’ tenor, including renewals, mobilised between June 8 and September 30, 2026, and applies for CRR purposes from the reporting fortnight beginning July 1, 2026 based on net demand and time liabilities as on June 15, 2026. The measure, following the Governor’s June 5 decision to introduce a USD-INR swap facility for such funds, applies to the original deposit amounts for as long as they remain on banks’ books.