What changed
The Reserve Bank of India released the 'Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026'. This amendment inserts a new sub-paragraph in paragraph 21, exempting fresh NRE term deposits of tenor three years or more (including renewals) mobilized between June 19, 2026 and September 30, 2026 from CRR and SLR. The exemption applies from the reporting fortnight beginning July 16, 2026, and transfers from NRO to NRE accounts do not qualify.
What it means for you
Urban Co-operative Banks can now exclude eligible fresh NRE term deposits (3+ years, mobilized by Sept 30, 2026) from CRR and SLR calculations. Banks should identify such deposits and adjust their reserve maintenance accordingly, noting the exemption is for original deposit amounts as long as held.
What you must do
- Access the full RBI notification from the provided source URL to read the complete amendment text.
- Identify fresh NRE term deposits of three years or more mobilized between June 19, 2026 and September 30, 2026 (including renewals) and exclude them from CRR/SLR calculations from the fortnight beginning July 16, 2026.
- Ensure that transfers from NRO to NRE accounts are not treated as eligible for this exemption.
- Update internal systems and train treasury/compliance teams on this specific exemption.
- Monitor RBI's website for any further clarifications or circulars related to this amendment.
Who it affects
Urban Co-operative Banks (UCBs), Treasury departments of UCBs, Compliance officers at UCBs
What is the effective date of the Third Amendment Directions, 2026?
The directions come 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 percentage for UCBs?
No, it does not change the rates. It only exempts specific fresh NRE term deposits (3+ years, mobilized by Sept 30, 2026) from maintenance of CRR and SLR.
Where can I find the complete text of the amendment?
The full notification is available on the RBI website at the URL provided in the source: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=13518&Mode=0