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RRBs: NRE Term Deposits of 3+ Years Exempt from CRR/SLR till Sep 30, 2026

Current · Source: Reserve Bank of India · official publication, 30 Sep 2026 · issued 30 Sep 2026 · ~2 min read
Quick answerFresh NRE term deposits of 3 years or more, mobilized by RRBs from June 19 to Sep 30, 2026, are exempt from CRR and SLR maintenance. This exemption applies to original deposit amounts as long as they remain in bank books. NRO-to-NRE transfers do not qualify.
The rule, in the simplest words
How it plays out — a real example

Priya, the treasury head of a regional rural bank, sees the new rule. She tells her branch managers to promote 3-year NRE fixed deposits to NRIs, knowing these deposits won't need CRR or SLR set-asides. She updates the bank's NDTL calculation software to exclude these deposits from July 16, 2026, freeing up funds for lending.

What changed

RBI inserted a new sub-paragraph (6) in paragraph 20 of the RRB CRR/SLR Directions, 2025. It exempts fresh NRE term deposits of 3+ years tenor, mobilized between June 19 and Sep 30, 2026, from CRR and SLR maintenance. The exemption starts from the reporting fortnight beginning July 16, 2026, based on NDTL as of June 30, 2026.

What it means for you

RRBs can now attract longer-tenor NRE deposits without setting aside reserves, improving their lendable resources and net interest margins. This is a targeted liquidity relief for RRBs to boost foreign-currency-linked rupee deposits. Banks must ensure only fresh NRE deposits (not NRO transfers) qualify for the exemption.

What you must do

Who it affects

Regional Rural Banks (RRBs), Treasury and ALM teams of RRBs, Branch managers handling NRE deposits, Compliance and reporting departments of RRBs

❓ Common questions

What deposits qualify for the CRR/SLR exemption?

Only fresh NRE term deposits with a tenor of 3 years or more, mobilized (including renewals at maturity) between June 19, 2026 and September 30, 2026, qualify. Transfers from NRO accounts to NRE accounts do not qualify.

When does the exemption take effect for CRR?

The exemption applies from the reporting fortnight beginning July 16, 2026, based on the NDTL computation as on June 30, 2026.

How long does the exemption last for a qualifying deposit?

The exemption is available for the original deposit amount as long as the deposit remains in the bank's books.

🧰 Tools — save, print, templates & related
Most relevant forTeller / Cashier / Customer Service OfficerPersonal Banker / Branch RM (Portfolio)Branch Sales / CASA Acquisition OfficerBranch Manager — Private Bank / SFBBranch Manager — PSU / Co-op / RRB (sanctioning powers)Branch Operations (Accounts / FD / CASA)
🛠 Banker’s toolkit — checklists & reply templates →
Who does what — compliance checklist
🏦 Branch Manager
  • Train branch staff to correctly classify fresh NRE deposits of 3+ years tenor mobilized between June 19 and Sep 30, 2026.
💻 IT / Systems
  • Update internal CRR/SLR computation systems to exclude qualifying NRE term deposits from NDTL from July 16, 2026.
📜 Compliance
  • Ensure NRO-to-NRE transfers are not mistakenly treated as exempt; only fresh deposits or renewals at maturity qualify.
  • Report the exempt amounts in Form A under the new item VIII.8 as per the amended Annex A.
  • Monitor deposit tenor and mobilization dates to avoid non-compliance with the exemption window.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (Regional Rural Banks (RRBs), Treasury and ALM teams of RRBs, Branch managers handling NRE deposits, Compliance and reporting departments of RRBs), your first concrete step on “RRBs: NRE Term Deposits of 3+ Years Exempt from CRR/SLR till Sep 30, 2026” is: “Update internal CRR/SLR computation systems to exclude qualifying NRE term deposits from NDTL from July 16, 2026.” (RBI issued this 30 Sep 2026).

  1. Circular: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=13520&Mode=0 -- RRBs: NRE Term Deposits of 3+ Years Exempt from CRR/SLR till Sep 30, 2026
  2. Issued: 30 Sep 2026
  3. Action required: Update internal CRR/SLR computation systems to exclude qualifying NRE term deposits from NDTL from July 16, 2026.
  4. Action required: Train branch staff to correctly classify fresh NRE deposits of 3+ years tenor mobilized between June 19 and Sep 30, 2026.
  5. Action required: Ensure NRO-to-NRE transfers are not mistakenly treated as exempt; only fresh deposits or renewals at maturity qualify.
  6. Action required: Report the exempt amounts in Form A under the new item VIII.8 as per the amended Annex A.
  7. Action required: Monitor deposit tenor and mobilization dates to avoid non-compliance with the exemption window.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. 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 27 Jul 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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