RBI Revises Deadline for CRR and SLR Exemption on FCNR(B) and NRE Deposits by Regional Rural Banks
Background and Context
The Reserve Bank of India has issued a fresh set of amendment directions targeting Regional Rural Banks (RRBs) with respect to their obligations under the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) framework. The Reserve Bank of India (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026, issued on August 25, 2026, bring about a singular but significant modification — the curtailment of the deadline for availing CRR and SLR exemptions on certain qualifying foreign currency and non-resident deposits.
This amendment is particularly relevant for RRBs that have been actively mobilizing FCNR(B) deposits and Non-Resident (External) Rupee (NRE) term deposits under the exemption framework introduced earlier in 2026. The revised directions have come into force with immediate effect.
Statutory Authority
The Fourth Amendment Directions have been issued by the Reserve Bank of India in exercise of the powers vested under:
Section 35Aof the Banking Regulation Act, 1949Section 42of the Reserve Bank of India Act, 1934Sections 18 and 24of the Banking Regulation Act, 1949, as amended from time to time
The RBI, being satisfied that it is necessary and expedient in the public interest so to do, has issued these directions pursuant to the above statutory provisions and all other enabling laws applicable in this regard.
The Existing Exemption Framework: A Brief Overview
Origins of the CRR and SLR Exemption
The exemption mechanism for Regional Rural Banks in respect of fresh FCNR(B) and NRE deposits was introduced through earlier amendment directions:
**Second Amendment Directions, 2026 (dated June 8, 2026)😗* Introduced the CRR and SLR exemption for fresh FCNR(B) deposits mobilized by RRBs within a defined window.
**Third Amendment Directions, 2026 (dated June 19, 2026)😗* Extended a similar exemption to fresh NRE term deposits mobilized by RRBs within a separately specified period.
Both sets of directions were incorporated into the parent framework — the Reserve Bank of India (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.