CRR/SLR Exemption for Long-Term FCNR(B) and NRE Deposits
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/190 · issued 19 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 and SLR. NRO-to-NRE transfers don't qualify.
What changed
Previously, all FCNR(B) and NRE deposits were included in NDTL for CRR/SLR. Now, only incremental deposits (over the July 26, 2013 base) with 3+ year maturity are exempt from these reserve requirements.
What it means for you
This frees up funds for banks, as they don't need to set aside reserves for these specific long-term foreign currency and NRE deposits. It incentivizes banks to mobilize longer-tenor NRI deposits, improving their liability profile and reducing reserve costs.
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
Calculate incremental FCNR(B) and NRE deposits using July 26, 2013 as base date.
Exclude deposits with 3+ year maturity from NDTL for CRR/SLR computation.
Ensure NRO-to-NRE transfers are not counted for this exemption.
Update internal systems to track base date and maturity for compliance.
Who it affects
Regional Rural Banks (RRBs), Scheduled State Cooperative Banks (StCBs), NRI deposit operations teams, Treasury and compliance departments
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 13:23 IST
Status change: withdrawn03 Aug 2026, 04:00 IST
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 that level, with 3+ year maturity, qualify for exemption.
Do transfers from NRO to NRE accounts qualify for this exemption?
No, such transfers are explicitly excluded from the CRR/SLR exemption.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/190
RPCD.CO.RRB/RCB.BC.No. 20 /03.05.33/2013-14
August 19, 2013
All Regional Rural Banks/
Scheduled State Cooperative 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
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. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully,
(Madhavi Sharma)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/190 · issued 19 Aug 2013. The plain-English explanation above is BankPulse’s own independent summary.
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.
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=8316&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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