RBI Brings Forward CRR-SLR Exemption Cut-Off for Specified FCNR(B) and NRE Deposits to August 31
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The Reserve Bank of India has advanced the terminal date for specified exemptions from the Cash Reserve Ratio and Statutory Liquidity Ratio requirements on certain fresh foreign-currency and non-resident deposits. Under the amendment issued on 25 August 2026, the earlier terminal date of 30 September 2026 has been replaced with 31 August 2026. The change takes effect immediately.
What RBI changed
RBI issued the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026 under reference RBI/2026-27/238 and DOR.RET.REC.205/12.01.001/2026-27. The amendment substitutes the terminal date appearing in paragraphs 20(8) and 20(9) of the principal directions.
Those provisions deal with specified fresh FCNR(B) deposits and NRE term deposits that had been granted temporary relief from CRR and SLR requirements. RBI has now shortened the eligible mobilisation window by one month.
Which deposits are affected
For fresh Foreign Currency Non-Resident (Bank) deposits, the exemption framework covered deposits with a minimum tenor of three years and a maximum tenor of five years that were mobilised from 8 June 2026. The earlier terminal date was 30 September 2026; under the new amendment, qualifying deposits must be mobilised by 31 August 2026 to fall within the specified window.
For fresh Non-Resident External term deposits, the framework covered deposits with a tenor of three years and above, including renewals on maturity, mobilised from 19 June 2026. Here too, RBI has moved the terminal date from 30 September to 31 August 2026.
Why the date change matters for banks
The amendment is operationally important because CRR and SLR determine how much of a bank's eligible liabilities must be maintained in prescribed reserve and liquid-asset forms. A change in the exemption window can therefore affect liability planning, treasury calculations and regulatory reporting for deposits raised around the cut-off date.
Banks that have been using the temporary exemption framework should ensure that systems, product teams and treasury functions are aligned to the revised date. Deposits mobilised after 31 August 2026 should not be treated as qualifying under these specific temporary provisions merely because the earlier directions had referred to 30 September.
What finance and compliance teams should check now
- Update internal circulars, product notes and operating instructions that still mention 30 September 2026 as the terminal date.
- Review FCNR(B) deposits mobilised from 8 June 2026 and NRE term deposits mobilised from 19 June 2026 against the revised 31 August cut-off.
- Ensure CRR and SLR computation logic reflects the amended eligibility window.
- Coordinate between treasury, finance, regulatory reporting and deposit operations so that post-cut-off balances are classified correctly.
Background to the temporary relief
RBI had introduced the temporary reserve-requirement relief in June 2026 as part of measures relating to eligible non-resident deposits. The August 25 amendment does not change the qualifying tenors described in the relevant paragraphs; the material change announced in this notification is the advancement of the terminal mobilisation date.
For commercial banks, the key compliance point is straightforward: the relevant temporary CRR and SLR exemption window for the specified fresh FCNR(B) and NRE term deposits now ends on 31 August 2026, not 30 September 2026. Because the amendment is effective immediately, banks should update their reserve-computation and operational controls without waiting for the previously expected September-end date.
Useful official links
Key takeaway
The same-day RBI amendment changes a live operational cut-off for banks and treasury/compliance teams, creating immediate search and professional relevance.
