RBI Tweaks CRR/SLR Rules for Small Finance Banks – Third Amendment Directions, 2026 (June 19, 2026)
Current & verified — this is the latest version
Source: Reserve Bank of India · official publication, 19 Jun 2026 · issued 19 Jun 2026 · ~2 min read
Quick answerRBI issued the Third Amendment Directions, 2026 on June 19, 2026, exempting NRE term deposits of 3+ years mobilized from June 19, 2026 to September 30, 2026 from CRR and SLR maintenance for Small Finance Banks. The CRR exemption starts from the reporting fortnight beginning July 16, 2026.
The rule, in the simplest words
Small Finance Banks do not have to keep CRR (cash with RBI) or SLR (safe investments) for new NRE (foreigner's rupee) deposits that are for 3 years or more, if the deposit is made between June 19, 2026 and September 30, 2026.
The CRR (cash with RBI) break starts from the fortnight (two-week period) that begins July 16, 2026.
Only fresh deposits or renewals of old deposits count – money moved from NRO (another type of foreigner's account) to NRE does NOT get this break.
The break lasts as long as the deposit stays in the bank.
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, sees a customer bring in a 3-year NRE deposit of ₹5 lakh on August 1, 2026. She smiles because she knows this deposit is exempt from CRR and SLR, so her bank can use all that money for loans without setting aside any reserves. She makes sure to mark it correctly in the system and reminds her team that transfers from NRO accounts don't qualify.
What changed
RBI released the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026 on June 19, 2026. The amendment inserts a new sub-paragraph 20(7) exempting fresh NRE term deposits of tenor 3+ years (including renewals) mobilized between June 19, 2026 and September 30, 2026 from CRR and SLR. CRR exemption applies from the reporting fortnight beginning July 16, 2026. Transfers from NRO to NRE accounts do not qualify. Corresponding changes are made to paragraph 29(5) and Annex A Form A.
What it means for you
Small Finance Banks can now offer NRE term deposits of 3+ years without maintaining CRR or SLR on those deposits, provided they are mobilized between June 19, 2026 and September 30, 2026. This may reduce compliance costs and encourage longer-term NRE deposits. Banks must ensure that only eligible deposits (fresh or renewed, not transferred from NRO) are exempted and update their reporting systems accordingly.
What you must do
Review the full text of the Third Amendment Directions, 2026 on the RBI website.
Update internal CRR and SLR compliance checklists for Small Finance Banks to include the new exemption for NRE term deposits of 3+ years.
Train treasury and compliance teams on the eligibility criteria: deposits mobilized between June 19, 2026 and September 30, 2026, and CRR exemption effective from July 16, 2026.
Ensure that transfers from NRO to NRE accounts are not treated as eligible for the exemption.
Monitor RBI’s portal for any clarifications or corrigenda to this amendment.
Who it affects
Small Finance Banks, Treasury departments of SFBs, Compliance officers at SFBs
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the effective date of this Third Amendment?
The amendment comes into force with immediate effect from June 19, 2026. The CRR exemption applies from the reporting fortnight beginning July 16, 2026.
Does this amendment change the CRR or SLR rates for Small Finance Banks?
No, the amendment does not change the rates but introduces an exemption: NRE term deposits of 3+ years mobilized between June 19, 2026 and September 30, 2026 are exempt from CRR and SLR maintenance.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
Monitor RBI’s portal for any clarifications or corrigenda to this amendment.
📜 Compliance
Review the full text of the Third Amendment Directions, 2026 on the RBI website.
Update internal CRR and SLR compliance checklists for Small Finance Banks to include the new exemption for NRE term deposits of 3+ years.
Train treasury and compliance teams on the eligibility criteria: deposits mobilized between June 19, 2026 and September 30, 2026, and CRR exemption effective from July 16, 2026.
Ensure that transfers from NRO to NRE accounts are not treated as eligible for the 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 a Compliance officer at a bank this circular applies to (Small Finance Banks, Treasury departments of SFBs, Compliance officers at SFBs), your first concrete step on “RBI Tweaks CRR/SLR Rules for Small Finance Banks – Third Amendment Directions, 2026 (June 19, 2026)” is: “Review the full text of the Third Amendment Directions, 2026 on the RBI website.” (RBI issued this 19 Jun 2026).
Circular: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=13517&Mode=0 -- RBI Tweaks CRR/SLR Rules for Small Finance Banks – Third Amendment Directions, 2026 (June 19, 2026)
Issued: 19 Jun 2026
Action required: Review the full text of the Third Amendment Directions, 2026 on the RBI website.
Action required: Update internal CRR and SLR compliance checklists for Small Finance Banks to include the new exemption for NRE term deposits of 3+ years.
Action required: Train treasury and compliance teams on the eligibility criteria: deposits mobilized between June 19, 2026 and September 30, 2026, and CRR exemption effective from July 16, 2026.
Action required: Ensure that transfers from NRO to NRE accounts are not treated as eligible for the exemption.
Action required: Monitor RBI’s portal for any clarifications or corrigenda to this amendment.
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.
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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=13517&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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