RBI Exempts Fresh NRE Term Deposits of 3+ Years from CRR/SLR for UCBs (June 19, 2026)
Current · 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 for Urban Co-operative Banks, exempting fresh NRE term deposits of three years or more mobilized from June 19, 2026 to September 30, 2026 from CRR and SLR maintenance. Banks must review this specific exemption and adjust their reserve calculations accordingly.
The rule, in the simplest words
From June 19, 2026 to September 30, 2026, if a customer opens a new NRE (Non-Resident External, a type of bank account for Indians living abroad) fixed deposit for 3 years or more, the bank does not have to keep any reserve money (CRR/SLR) for that deposit.
This rule also applies if an old NRE fixed deposit is renewed (extended) for 3 years or more during that same time window.
The bank can stop setting aside reserve money for these deposits starting from the reporting period that begins July 16, 2026.
Money moved from an NRO (Non-Resident Ordinary, another type of account for Indians abroad) to an NRE account does NOT qualify for this special rule.
The exemption lasts as long as the deposit stays in the bank's books.
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, sees a customer renew a 3-year NRE fixed deposit on August 1, 2026. She notes the deposit is exempt from CRR/SLR, so she updates her system to exclude it from reserve calculations starting the fortnight of July 16, 2026, making sure not to apply the exemption to any NRO-to-NRE transfers.
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
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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
Update internal systems and train treasury/compliance teams on this specific exemption.
📜 Compliance
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.
Monitor RBI's website for any further clarifications or circulars related to this amendment.
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 (Urban Co-operative Banks (UCBs), Treasury departments of UCBs, Compliance officers at UCBs), your first concrete step on “RBI Exempts Fresh NRE Term Deposits of 3+ Years from CRR/SLR for UCBs (June 19, 2026)” is: “Access the full RBI notification from the provided source URL to read the complete amendment text.” (RBI issued this 19 Jun 2026).
Circular: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=13518&Mode=0 -- RBI Exempts Fresh NRE Term Deposits of 3+ Years from CRR/SLR for UCBs (June 19, 2026)
Issued: 19 Jun 2026
Action required: Access the full RBI notification from the provided source URL to read the complete amendment text.
Action required: 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.
Action required: Ensure that transfers from NRO to NRE accounts are not treated as eligible for this exemption.
Action required: Update internal systems and train treasury/compliance teams on this specific exemption.
Action required: Monitor RBI's website for any further clarifications or circulars related 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.
💬 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=13518&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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