HomeCirculars › RBI/2013-14/184

CRR/SLR Exemption for FCNR(B) and NRE Deposits

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/184 · issued 14 Aug 2013 · ~1 min read
Quick answerFrom August 24, 2013, incremental FCNR(B) and NRE deposits with maturity of 3 years or more, over the July 26, 2013 base, are exempt from CRR/SLR and excluded from ANBC for priority sector lending.

What changed

Previously, all FCNR(B) and NRE deposits were included in NDTL for CRR/SLR computation. Now, incremental deposits of 3 years or more, over the July 26, 2013 base, are exempt from CRR/SLR and excluded from ANBC for priority sector lending. Transfers from NRO to NRE accounts do not qualify for this exemption.

What it means for you

Banks can now raise longer-term foreign currency and NRE deposits without the cost of maintaining CRR/SLR, freeing up funds for lending. This also reduces the priority sector lending burden by excluding advances against these deposits from ANBC. It incentivizes banks to attract stable, long-term NRI deposits.

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

All scheduled commercial banks (excluding RRBs), Treasury and ALM teams, Priority sector lending compliance teams, NRI deposit product managers

❓ Common questions

Regulatory timeline

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

What is the base date for calculating incremental deposits?

The base date is July 26, 2013. Only deposits above the balance on that date qualify for exemptions.

Do transfers from NRO to NRE accounts qualify for the exemption?

No, such transfers are explicitly excluded from the exemption.

How does this affect priority sector lending calculations?

Advances made in India against these exempt deposits are excluded from Adjusted Net Bank Credit (ANBC), reducing the base for priority sector targets.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
Withdrawn by FCNR(B)/NRE Deposit CRR/SLR Exemption Withdrawal Timeline
RBI’s words: “the exemption granted on incremental FCNR (B)/NRE deposits from maintenance of CRR/SLR will be withdrawn”
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1055: DBOD.No.Ret.BC.36/12.01.001/2013-14 — "Section 42(1) of the Reserve Bank of India Act, 1934 and Section 24 of the Banking Regulation Act, 1949 - FCNR(B) / NRE”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/184 Ref: DBOD.No.Ret.BC. 36/12.01.001/2013-14 August 14, 2013 All Scheduled Commercial Banks (Excluding Regional Rural Banks) Dear Sir, Section 42(1) of the Reserve Bank of India Act, 1934 and Section 24 of the Banking Regulation Act, 1949 - FCNR(B)/NRE deposits - exemption from maintenance of CRR/SLR and exclusion from ANBC for Priority Sector Lending At present, banks are required to include all Foreign Currency Non-Resident Bank [FCNR (B)] and Non-Resident (External) Rupee (NRE) deposit liabilities for computation of Net Demand and Time Liabilities (NDTL) and for maintenance of CRR and SLR. 2. Banks are advised that with effect from fortnight beginning August 24, 2013, incremental FCNR (B) deposits as also NRE deposits with reference base date of July 26, 2013, and having maturity of three years and above, mobilised by banks will be exempt from maintenance of CRR and SLR. To amplify, if a bank had a total FCNR (B) deposit base of say USD 100 as on the base date, and mobilises an incremental deposit of say USD 20, that portion of USD 20 which has a maturity of 3 years and above will not be part of NDTL and will qualify for CRR and SLR exemption. The same principle will apply for calculation of NRE deposits for exemption from maintenance of CRR/SLR requirements. However, any transfer from Non-Resident (Ordinary) (NRO) accounts to NRE accounts shall not qualify for such exemptions. 3. Further, advances extended in India against the incremental FCNR (B) / NRE deposits qualifying for exemption from CRR/SLR requirements as above, will also be excluded from Adjusted Net Bank Credit for computation of priority sector lending targets. 4. Please acknowledge receipt. Yours faithfully (Sudha Damodar) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/184 · issued 14 Aug 2013. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8309&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗