RBI updates 24-30 August 2026: FCNR/NRE relief ends 31 August

CRR/SLR exemptions and interest-rate relaxations on fresh FCNR(B) deposits of 3-5 years and NRE term deposits of 3 years or more now end on 31 August 2026, not 30 September. The cut applies immediately to commercial banks, small finance banks, RRBs, local area banks and co-operative banks.

Upper Layer Infrastructure Debt Fund-NBFCs must follow the same large-exposure limits that already apply to Infrastructure Finance Companies. The concentration-risk amendment takes effect immediately.

Section 35A directions restrict three co-operative banks for six months. Desaiganj Nagari Cooperative Bank Maryadit and Ashok Sahakari Bank, Ahmednagar, cannot allow depositor withdrawals without approval. Citizens Co-operative Bank, Jammu, may pay up to ₹1,25,000 per depositor. Eligible deposits remain covered by DICGC up to ₹5 lakh.

RBI fined Shri Vijay Mahantesh Co-operative Bank ₹2.50 lakh and Vikas Souharda Co-operative Bank ₹1 lakh for IRAC failures, Pragathi Co-operative Bank ₹2 lakh for director-loan and exposure breaches, and Jalna DCCB ₹50,000 for CIC reporting and KYC risk-review gaps.

Liquidity operations were overnight, 2-day, 3-day and 15-day Variable Rate Reverse Repo auctions under LAF, including a 15-day VRRR on 31 August.

The Centre reissued 6.94% GS 2036 for ₹34,000 crore on 28 August and announced a ₹30,000 crore buyback of dated securities maturing between October 2026 and February 2027, to be auctioned on 3 September.