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.

• Record 1: Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026
• Record 2: Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Third Amendment Directions, 2026
• Record 3: Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026

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.

• Record: Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Fourth Amendment Directions, 2026

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.

• Record 1: Directions under Section 35 A read with Section 56 of the Banking Regulation Act, 1949 – Desaiganj Nagari Cooperative Bank Maryadit, Desaiganj
• Record 2: Directions under Section 35 A read with Section 56 of the Banking Regulation Act, 1949 – The Citizens Co-operative Bank Ltd., Jammu

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.

• Record 1: RBI imposes monetary penalty on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka
• Record 2: RBI imposes monetary penalty on The Pragathi Co-operative Bank Limited, Karnataka
• Record 3: RBI imposes monetary penalty on Vikas Souharda Co-operative Bank Limited, Hosapete, Karnataka

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.

• Record 1: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on August 24, 2026
• Record 2: RBI to conduct 2-day Variable Rate Reverse Repo (VRRR) auction under LAF on August 25, 2026
• Record 3: RBI to conduct 3-day Variable Rate Reverse Repo (VRRR) auction under LAF on August 28, 2026

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.

• Record 1: Auction of Government of India Dated Security
• Record 2: Buyback of Government of India Dated Securities