RBI Exempts Fresh FCNR(B) Deposits from CRR and SLR Requirements for Regional Rural Banks

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026, effective June 8, 2026. Under the amendment, fresh FCNR(B) deposits with tenors ranging from 3 to 5 years, mobilized or renewed by Regional Rural Banks (RRBs) between June 8, 2026 and September 30, 2026, will be exempt from maintaining Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements. The measure aligns with RBI’s newly introduced US Dollar-Rupee swap facility and is aimed at encouraging foreign currency inflows and strengthening India's foreign exchange reserves.