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CRR on FCNR(B): RRBs to Use RBI Reference Rate

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/109 · issued 02 Jul 2012 · ~1 min read
Quick answerRBI directs RRBs to use the RBI Reference Rate (12:30 pm) instead of FEDAI indicative rates for converting FCNR(B) deposits into rupee equivalents for CRR calculation, effective from the fortnight ending July 13, 2012.

What changed

Previously, RRBs used FEDAI indicative rates at 12 noon for four major currencies to determine rupee equivalent liabilities under FCNR(B) for CRR. Now, they must use the RBI Reference Rate announced on the RBI website at around 12:30 pm for converting foreign assets/deposits in Form A Return.

What it means for you

This aligns RRBs with the standard reference rate used by other banks, reducing discrepancies in CRR calculations. It ensures uniformity in reporting and may affect liquidity management for RRBs, as the RBI Reference Rate can differ from FEDAI rates.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

Regional Rural Banks (RRBs), Treasury and compliance teams at RRBs, RBI's rural banking supervision division

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Why did RBI change the rate source for CRR on FCNR(B)?

To standardize the conversion rate across all banks, reducing arbitrage and ensuring consistent CRR reporting. The RBI Reference Rate is a single, authoritative rate published daily.

Does this apply to all foreign currency deposits or only FCNR(B)?

The circular specifically addresses FCNR(B) deposits for CRR purposes. Other foreign currency liabilities may follow separate guidelines.

What happens if an RRB continues using FEDAI rates after July 13, 2012?

Non-compliance could lead to incorrect CRR maintenance and potential penalties under Section 42 of the RBI Act, 1934.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1259: RPCD.CO.RRB.BC.No.10/03.05.033/2012-13 — "Section 42 of the RBI Act, 1934 - Maintenance of CRR on Foreign Currency (Non-Resident) [FCNR (B)] Scheme" dated Jul”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/109 RPCD CO. RRB. BC. No.10/03.05.033/2012-13 July 2, 2012 All Regional Rural Banks Dear Sir, Section 42 of the RBI Act, 1934 – Maintenance of CRR on Foreign Currency (Non-Resident) [FCNR (B)] Scheme As per extant guidelines in order to determine the rupee equivalent liability under FCNR (B) Scheme for the purpose of Cash Reserve Ratio (CRR), Regional Rural Banks (RRBs) may use the FEDAI indicative rate for all the four major currencies (viz. US dollar, GBP, Japanese Yen, and DM/Euro) on relevant reporting Friday which is available at 12.00 noon on any working day. 2. We advise that RRBs may be guided by the RBI Reference rate announced on the Reserve Bank’s web site at around 12:30 pm (instead of indicative rates announced by FEDAI at 12 noon) for the purpose of converting foreign assets/deposits for reporting in Form A Return. The change may be brought into effect from the reporting fortnight ending July 13, 2012. Yours faithfully, I.S. Negi (General Manager)
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/109 · issued 02 Jul 2012. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7411&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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