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
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.