Current · Source: Reserve Bank of India · RBI/2026-27/102 · issued 08 Jun 2026 · ~2 min read
Quick answerRBI exempts fresh FCNR(B) deposits of 3-5 year tenor from CRR and SLR if mobilised between June 8 and September 30, 2026. This aims to boost dollar inflows via a US Dollar-Rupee swap facility. Exemption applies to original deposit amounts while held.
The rule, in the simplest words
Banks do not have to keep any money with RBI (CRR) or buy government bonds (SLR) for new FCNR(B) deposits (foreign currency deposits from NRIs) that last between 3 and 5 years.
This special rule only works for deposits made from June 8, 2026 to September 30, 2026, including deposits that are renewed (started again) during that time.
The exemption starts from the reporting period beginning July 1, 2026, and lasts as long as the deposit stays in the bank's books.
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, learns from her treasury team that new 3-year FCNR(B) deposits from NRIs won't need CRR or SLR reserves. She quickly calls her NRI clients, explaining they can lock in higher rates without the bank having to set aside extra cash, making the deposit more profitable for the bank and attractive for them.
What changed
RBI amended the CRR/SLR Directions 2025 to insert a new sub-paragraph (8) in paragraph 20, exempting fresh FCNR(B) deposits of minimum 3 years and maximum 5 years tenor from CRR and SLR maintenance. The exemption covers deposits mobilised (including renewals) from June 8, 2026 to September 30, 2026, effective from the reporting fortnight beginning July 1, 2026 (based on NDTL computation as on June 15, 2026). Consequential changes were made to paragraph 29(5) and Annex A to Form A to include the new exemption.
What it means for you
Banks can now attract longer-tenor FCNR(B) deposits without the cost of maintaining CRR and SLR, improving their net interest margins on these liabilities. This is part of a broader US Dollar-Rupee swap facility to encourage dollar inflows, helping stabilise the rupee and ease liquidity conditions. Banks should actively market this window to NRIs and foreign investors before the September 30 deadline.
What you must do
Update internal CRR/SLR computation systems to exclude eligible FCNR(B) deposits from maintenance from July 1, 2026.
Train treasury and forex teams on the US Dollar-Rupee swap facility linked to these deposits.
Launch marketing campaigns targeting NRI depositors for 3-5 year FCNR(B) deposits before September 30, 2026.
Ensure accurate reporting in Form A by incorporating the new item VIII.7 for FCNR(B) exemption.
Who it affects
All commercial banks accepting FCNR(B) deposits, Treasury and ALM desks, NRI banking divisions, Compliance and regulatory reporting teams
❓ Common questions
Which deposits qualify for the CRR/SLR exemption?
Only fresh FCNR(B) deposits with a minimum tenor of 3 years and maximum of 5 years, mobilised between June 8, 2026 and September 30, 2026, including renewals upon maturity.
When does the exemption become effective?
From the reporting fortnight beginning July 1, 2026, based on NDTL computation as on June 15, 2026. It applies for the original deposit amount as long as the deposit remains in the bank's books.
Does this exemption apply to existing FCNR(B) deposits?
No, only deposits mobilised or renewed during the specified window (June 8 to September 30, 2026) qualify. Existing deposits are not covered.
📜 Read the original circular — full text as issued by RBI
RBI/2026-27/102
DOR.RET.REC.84/12.01.001/2026-27
June 08, 2026
Reserve Bank of India (Commercial 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.
2. In this connection, please refer to the Reserve Bank of India (Commercial 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.
3. 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 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.
4. These Directions shall be called the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026.
5. The provisions shall come into force with immediate effect.
6. These Amendment Directions modify the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
i. In paragraph 20, the sub-paragraph “8. 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.
ii. In paragraph 29(5), the words ‘paragraphs 20 (4), (5), (6) and (7)’ shall be substituted with ‘paragraphs 20 (4), (5), (6), (7) and (8)’.
iii. In item VIII of the Annex A to Form A,
the words “Circular dated July 06" shall be substituted with words “[Para 20(7)]" in item VIII.5 and VIII.6.
the item VIII.7 shall be renumbered as item VIII.8.
the words “FCNR (B) – 2026 [para 20(8)]” shall be inserted as item VIII.7.
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/102 · issued 08 Jun 2026. The plain-English explanation above is BankPulse’s own independent summary.
Update internal CRR/SLR computation systems to exclude eligible FCNR(B) deposits from maintenance from July 1, 2026.
📜 Compliance
Train treasury and forex teams on the US Dollar-Rupee swap facility linked to these deposits.
Launch marketing campaigns targeting NRI depositors for 3-5 year FCNR(B) deposits before September 30, 2026.
Ensure accurate reporting in Form A by incorporating the new item VIII.7 for FCNR(B) exemption.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (All commercial banks accepting FCNR(B) deposits, Treasury and ALM desks, NRI banking divisions, Compliance and regulatory reporting teams), your first concrete step on “CRR/SLR Exemption for 3-5 Year FCNR(B) Deposits” is: “Update internal CRR/SLR computation systems to exclude eligible FCNR(B) deposits from maintenance from July 1, 2026.” (RBI issued this 08 Jun 2026).
Circular: RBI/2026-27/102 -- CRR/SLR Exemption for 3-5 Year FCNR(B) Deposits
Issued: 08 Jun 2026
Action required: Update internal CRR/SLR computation systems to exclude eligible FCNR(B) deposits from maintenance from July 1, 2026.
Action required: Train treasury and forex teams on the US Dollar-Rupee swap facility linked to these deposits.
Action required: Launch marketing campaigns targeting NRI depositors for 3-5 year FCNR(B) deposits before September 30, 2026.
Action required: Ensure accurate reporting in Form A by incorporating the new item VIII.7 for FCNR(B) exemption.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 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.
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=13471&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
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 ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.