RBI notification RBI/2026-27/146 · 19 Jun 2026
Official title
Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
Summary
Check the official recordThe Reserve Bank of India exempts specific Non-Resident (External) Rupee term deposits from Cash Reserve Ratio and Statutory Liquidity Ratio requirements. This exemption applies to fresh or renewed deposits with a tenor of three years or more. Banks must mobilize these deposits between June 19, 2026, and September 30, 2026. The exemption applies from the reporting fortnight beginning July 16, 2026. The exemption remains valid for the original deposit amount for the duration the bank holds the deposit. Transfers from Non-Resident (Ordinary) accounts to Non-Resident (External) accounts do not qualify for this exemption. Small Finance Banks must update their reporting procedures to reflect these changes.
What you must do
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RBI/2026-27/146 DOR.RET.REC.124/12.01.001/2026-27 June 19, 2026
Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
Please refer to the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on June 8, 2026). On review, it has been decided that fresh Non-Resident (External) Rupee (NRE) term deposits of tenor of three years or more mobilized (including deposits that are renewed upon maturity) by the banks from the date of this Amendment Directions till September 30, 2026 will be exempted from maintenance of CRR and SLR.
Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and pursuant to Section 42 of the Reserve Bank of India Act, 1934 and Sections 18 and 24 of Banking Regulation Act, 1949, as amended from time to time, and all other provisions / laws enabling the Reserve Bank of India in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
These Directions shall be called the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026.
The provisions shall come into force with immediate effect.
These Amendment Directions modify the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
i. In paragraph 20, the following sub-paragraph shall be inserted “7. Fresh Non-Resident (External) Rupee (NRE) term deposits of tenor of three years or more mobilized (including deposits that are renewed upon maturity) by the banks between June 19, 2026 and September 30, 2026 are exempt from maintenance of CRR from the reporting fortnight beginning July 16, 2026 (i.e., based on the NDTL computation as on June 30, 2026) and subsequent fortnights thereafter. The exemption on reserves maintenance is available for the original deposit amounts till such time the deposits are held in the bank books. Any transfer from Non-Resident (Ordinary) (NRO) accounts to NRE accounts will not qualify for such exemptions”.
ii. In paragraph 29(5), the words ‘paragraphs 20 (3), (4), (5) and (6)’ shall be substituted with ‘paragraphs 20 (3), (4), (5), (6) and (7)’.
iii. In item VIII of the Annex A to Form A, the item VIII.8 shall be renumbered as item VIII.9 the words “NRE Term deposits – 2026 [para 20(7)]” shall be inserted as item VIII.8.
Yours faithfully,
(Manoranjan Padhy) Chief General Manager
