RRBs get CRR/SLR relief on 3-year+ NRE term deposits till Sep 2026
Current & verified — this is the latest version
Source: Reserve Bank of India · RBI/2026-27/149 · issued 19 Jun 2026 · ~2 min read
Quick answerRBI exempts fresh NRE term deposits of 3 years or more (including renewals) from CRR and SLR for RRBs from June 19 to Sep 30, 2026. Exemption applies to original deposit amounts until held in books; NRO-to-NRE transfers don't qualify.
The rule, in the simplest words
From June 19, 2026 to September 30, 2026, RRBs (a type of bank in villages) can take new NRE deposits (money from Indians living abroad) that last 3 years or more without keeping any cash reserve (CRR) or buying government bonds (SLR) for them.
The exemption starts from the reporting period beginning July 16, 2026, and works for the original deposit amount as long as the money stays in the bank.
If someone moves money from an NRO account (another type of foreign account) to an NRE account, that money does NOT get the exemption.
Deposits that are renewed (extended) for 3 years or more also qualify for the exemption.
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, sees a non-resident Indian customer who wants to deposit ₹5 lakh for 5 years. Priya explains that because of the new RBI rule, this deposit won't need any CRR or SLR, so the bank can lend out all that money and earn more interest. She updates the deposit form to mark it as eligible for the exemption starting July 16, 2026.
What changed
RBI inserted a new sub-paragraph in the RRB CRR/SLR Directions allowing exemption for fresh NRE term deposits of 3+ years tenor mobilized between June 19 and Sep 30, 2026. The exemption starts from the reporting fortnight beginning July 16, 2026. Corresponding updates were made to reporting forms and cross-references.
What it means for you
RRBs can now attract longer-tenor NRE deposits without setting aside CRR or SLR, improving their lendable resources and net interest margins. This is a targeted liquidity boost for RRBs to mobilize non-resident rupee funds, especially useful in a rising rate environment. Banks should update their NRE deposit product offerings and reporting systems to capture the exemption.
What you must do
Update NRE term deposit product literature and pricing to highlight the 3-year+ tenor exemption window.
Ensure internal systems flag eligible deposits (fresh/renewed, 3+ years, June 19–Sep 30, 2026) for CRR/SLR exemption.
Train treasury and compliance teams on the exemption start date (July 16, 2026 reporting fortnight) and exclusion of NRO-to-NRE transfers.
Modify Form A reporting (item VIII.8) to include the new exemption category.
Who it affects
Regional Rural Banks (RRBs), NRE deposit customers (non-resident Indians), Treasury and compliance departments of RRBs
❓ Common questions
Which deposits qualify for the CRR/SLR exemption?
Only fresh NRE term deposits of 3 years or more tenor mobilized (including renewals) between June 19, 2026 and Sep 30, 2026. Transfers from NRO to NRE accounts are not eligible.
When does the exemption take effect for CRR purposes?
The exemption applies from the reporting fortnight beginning July 16, 2026, based on NDTL computation as on June 30, 2026.
Is the exemption permanent for the deposit's life?
Yes, the exemption on reserves maintenance is available for the original deposit amounts until such time the deposits are held in the bank's books.
📜 Read the original circular — full text as issued by RBI
RBI/2026-27/149
DOR.RET.REC.125/12.01.001/2026-27
June 19, 2026
Reserve Bank of India (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026
Please refer to the Reserve Bank of India (Regional Rural 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 (Regional Rural 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 (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
i.In paragraph 20, the following sub-paragraph shall be inserted “6. 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 28(5), the words ‘paragraphs 20 (3), (4) and (5)’ shall be substituted with ‘paragraphs 20 (3), (4), (5) and (6)’.
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(6)]” 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/2026-27/149 · issued 19 Jun 2026. The plain-English explanation above is BankPulse’s own independent summary.
Ensure internal systems flag eligible deposits (fresh/renewed, 3+ years, June 19–Sep 30, 2026) for CRR/SLR exemption.
📜 Compliance
Update NRE term deposit product literature and pricing to highlight the 3-year+ tenor exemption window.
Train treasury and compliance teams on the exemption start date (July 16, 2026 reporting fortnight) and exclusion of NRO-to-NRE transfers.
Modify Form A reporting (item VIII.8) to include the new exemption category.
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 (Regional Rural Banks (RRBs), NRE deposit customers (non-resident Indians), Treasury and compliance departments of RRBs), your first concrete step on “RRBs get CRR/SLR relief on 3-year+ NRE term deposits till Sep 2026” is: “Update NRE term deposit product literature and pricing to highlight the 3-year+ tenor exemption window.” (RBI issued this 19 Jun 2026).
Circular: RBI/2026-27/149 -- RRBs get CRR/SLR relief on 3-year+ NRE term deposits till Sep 2026
Issued: 19 Jun 2026
Action required: Update NRE term deposit product literature and pricing to highlight the 3-year+ tenor exemption window.
Action required: Ensure internal systems flag eligible deposits (fresh/renewed, 3+ years, June 19–Sep 30, 2026) for CRR/SLR exemption.
Action required: Train treasury and compliance teams on the exemption start date (July 16, 2026 reporting fortnight) and exclusion of NRO-to-NRE transfers.
Action required: Modify Form A reporting (item VIII.8) to include the new exemption category.
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=13520&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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