Source: Reserve Bank of India · RBI/2026-27/145 · issued 19 Jun 2026 · ~2 min read
Quick answerRBI exempts fresh NRE term deposits of 3+ years tenor, mobilized from June 19 to Sept 30, 2026, from CRR and SLR maintenance. Exemption applies from July 16, 2026, for original deposit amounts as long as held. NRO-to-NRE transfers don't qualify.
The rule, in the simplest words
Banks do not have to keep any reserve money (CRR/SLR) for new NRE deposits (money from Indians living abroad) that are kept for 3 years or more, if the deposit is made between June 19 and September 30, 2026.
This rule starts from the reporting period that begins July 16, 2026, and the exemption lasts as long as the deposit stays in the bank.
Only the original deposit amount is exempt; if money is moved from an NRO account (another type of foreign account) to an NRE account, that does not qualify.
Deposits that are renewed (extended) during the same time period also get this benefit.
How it plays out — a real example
Ravi, a forex & trade-finance officer in Indore, sees a customer open a new NRE fixed deposit for 3 years on July 1, 2026. Ravi notes that this deposit is exempt from CRR and SLR, so he updates his system to exclude it from the reserve calculation starting July 16, 2026, making his bank's net interest margin a little better.
What changed
RBI issued the Third Amendment Directions, 2026, inserting a new sub-paragraph in the existing CRR/SLR Directions. It exempts fresh NRE term deposits of 3 years or more (including renewals) mobilized between June 19 and Sept 30, 2026, from CRR and SLR requirements. The exemption starts from the reporting fortnight beginning July 16, 2026, and applies only to original deposit amounts; NRO-to-NRE transfers are excluded.
What it means for you
Banks can now attract longer-tenor NRE deposits without the cost of maintaining CRR and SLR reserves, improving their net interest margins. This is a targeted liquidity incentive to boost stable, long-term foreign currency inflows. Banks should update their NRE deposit product offerings and reporting systems to capture the exemption correctly.
What you must do
Update NRE term deposit product terms to highlight the 3+ year tenor exemption for deposits booked between June 19 and Sept 30, 2026.
Ensure CRR/SLR computation systems exclude eligible NRE deposits from NDTL from the fortnight beginning July 16, 2026.
Train treasury and operations teams to identify and segregate qualifying deposits, including renewals, and exclude NRO-to-NRE transfers.
Review Form A reporting to include the new item VIII.8 for NRE Term deposits – 2026 as per amended Annex A.
Who it affects
All commercial banks accepting NRE deposits, Treasury and ALM desks managing reserve requirements, Retail and NRI deposit product teams
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Which deposits qualify for the CRR/SLR exemption?
Only fresh NRE term deposits with a tenor of 3 years or more, mobilized (including renewals) between June 19, 2026, and September 30, 2026, qualify. Transfers from NRO accounts to NRE accounts do not qualify.
When does the exemption become effective?
The exemption applies from the reporting fortnight beginning July 16, 2026, which is based on NDTL computation as on June 30, 2026, and continues for subsequent fortnights as long as the deposit remains in the bank's books.
Does the exemption apply to the entire deposit amount or only incremental?
The exemption is available for the original deposit amounts only. It is not limited to incremental deposits; all fresh qualifying deposits during the window are exempt.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
📜 Read the original circular — full text as issued by RBI
RBI/2026-27/145
DOR.RET.REC.123/12.01.001/2026-27
June 19, 2026
Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
Please refer to the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on June 8, 2026). On review, it has been decided that fresh Non-Resident (External) Rupee (NRE) term deposits of tenor of three years or more 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.
2. 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.
3. These Directions shall be called the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026.
4. The provisions shall come into force with immediate effect.
5. 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 following sub-paragraph shall be inserted “9. Fresh Non-Resident (External) Rupee (NRE) term deposits of tenor of three years or more mobilized (including deposits that are renewed upon maturity) by the banks between June 19, 2026 and September 30, 2026 are exempt from maintenance of CRR from the reporting fortnight beginning July 16, 2026 (i.e., based on the NDTL computation as on June 30, 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. Any transfer from Non-Resident (Ordinary) (NRO) accounts to NRE accounts will not qualify for such exemptions”.
ii. In paragraph 29(5), the words ‘paragraphs 20 (4), (5), (6), (7) and (8)’ shall be substituted with ‘paragraphs 20 (4), (5), (6), (7), (8) and (9)’.
iii. In item VIII of the Annex A to Form A,
the item VIII.8 shall be renumbered as item VIII.9
the words “NRE Term deposits – 2026 [para 20(9)]” shall be inserted as item VIII.8.
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/145 · issued 19 Jun 2026. The plain-English explanation above is BankPulse’s own independent summary.
Train treasury and operations teams to identify and segregate qualifying deposits, including renewals, and exclude NRO-to-NRE transfers.
💻 IT / Systems
Ensure CRR/SLR computation systems exclude eligible NRE deposits from NDTL from the fortnight beginning July 16, 2026.
📜 Compliance
Update NRE term deposit product terms to highlight the 3+ year tenor exemption for deposits booked between June 19 and Sept 30, 2026.
Review Form A reporting to include the new item VIII.8 for NRE Term deposits – 2026 as per amended Annex A.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All commercial banks accepting NRE deposits, Treasury and ALM desks managing reserve requirements, Retail and NRI deposit product teams), your first concrete step on “CRR/SLR Exemption for Long-Term NRE Deposits” is: “Update NRE term deposit product terms to highlight the 3+ year tenor exemption for deposits booked between June 19 and Sept 30, 2026.” (RBI issued this 19 Jun 2026).
Circular: RBI/2026-27/145 -- CRR/SLR Exemption for Long-Term NRE Deposits
Issued: 19 Jun 2026
Action required: Update NRE term deposit product terms to highlight the 3+ year tenor exemption for deposits booked between June 19 and Sept 30, 2026.
Action required: Ensure CRR/SLR computation systems exclude eligible NRE deposits from NDTL from the fortnight beginning July 16, 2026.
Action required: Train treasury and operations teams to identify and segregate qualifying deposits, including renewals, and exclude NRO-to-NRE transfers.
Action required: Review Form A reporting to include the new item VIII.8 for NRE Term deposits – 2026 as per amended Annex A.
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 05 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=13516&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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