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

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026, effective June 8, 2026. Under the amendment, fresh FCNR(B) deposits with a tenor of 3 to 5 years, mobilized or renewed by Rural Co-operative Banks between June 8, 2026 and September 30, 2026, will be exempt from CRR and SLR maintenance requirements. The move aligns with RBI’s newly announced US Dollar-Rupee swap facility and aims to encourage foreign currency inflows and strengthen India's foreign exchange reserves.