Regulatory Alerts2026-06-08
Added · Updated
Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026
Fresh FCNR (B) deposits with a minimum tenor of three years and a maximum tenor of five years, mobilized by rural co-operative banks between June 8, 2026, and September 30, 2026, are exempt from the maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). This exemption applies to the original deposit amounts while they remain in the bank books and extends to deposits renewed upon maturity. The exemption from CRR maintenance becomes effective from the reporting fortnight beginning July 1, 2026, based on the Net Demand and Time Liabilities (NDTL) computation as on June 15, 2026. These provisions modify the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025, and come into force with immediate effect.
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( 214 kb ) Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026
RBI/2026-27/105 DOR.RET.REC.87/12.01.001/2026-27
June 8, 2026
Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026
Please refer to the Governor’s Statement dated June 5, 2026 , wherein it has been decided to introduce a US Dollar-Rupee swap facility for fresh Foreign Currency Non-Resident (Bank) [FCNR (B)] dollar funds, mobilised for a minimum tenor of three years and maximum tenor of five years.
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In this connection, please refer to the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on January 22, 2026). It has been decided that fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years 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.
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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, read with section 56 (AACS), 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.
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These Directions shall be called the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026.
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The provisions shall come into force with immediate effect.
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These Amendment Directions modify the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
In paragraph 21, the sub-paragraph “5. Fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilized (including deposits that are renewed upon maturity) by the banks between June 8, 2026 and September 30, 2026 are exempt from maintenance of CRR from the reporting fortnight beginning July 1, 2026 (i.e., based on the NDTL computation as on June 15, 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” shall be inserted.
In paragraph 29(4), the words ‘paragraphs 21 (3) and 21 (4)’ shall be substituted with ‘paragraphs 21 (3), (4) and (5)’.
Yours faithfully,
(Manoranjan Padhy) Chief General Manager
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