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
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.