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Key Change

NRE term deposits ≥3 years mobilised Jun 19–Sep 30, 2026 exempt from CRR (from Jul 16 fortnight) and SLR. NRO-to-NRE transfers excluded. Form A updated for CBs, SFBs, RRBs.

RBI CRR & SLR Third Amendment Directions 2026: NRE Term Deposits of 3+ Years Exempted — All 5 Bank Categories

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Verified for complianceLast verified: 21 June 2026
14 min read1,942 wordsSource: Reserve Bank of India (RBI), D...Effective: 19 June 2026Last amended: 19 June 2026High impact

Summary

RBI issued 5 simultaneous CRR & SLR Third Amendment Directions (RBI/2026-27/145–149) on June 19, 2026. Fresh NRE term deposits of 3+ years mobilised June 19–Sep 30, 2026 exempted from CRR/SLR across Commercial Banks, SFBs, UCBs, Rural Co-ops, and RRBs.

Quick AnswerAI

The Reserve Bank of India issued five simultaneous Third Amendment Directions to the CRR and SLR Directions, 2025 on June 19, 2026, vide RBI/2026-27/145 (Commercial Banks), /146 (Small Finance Banks), /147 (Urban Co-operative Banks), /148 (Rural Co-operative Banks), and /149 (Regional Rural Banks), signed by Manoranjan Padhy, Chief General Manager. Statutory authority: Section 35A, Banking Regulation Act, 1949; Section 42, RBI Act, 1934; Sections 18 and 24, Banking Regulation Act, 1949. Core measure: Fresh Non-Resident (External) Rupee (NRE) term deposits of tenor three years or more, mobilised (including renewals at maturity) between June 19, 2026 and September 30, 2026, are exempted from maintenance of CRR and SLR. CRR exemption operates from the reporting fortnight beginning July 16, 2026 (NDTL as on June 30, 2026). Exemption covers original deposit amounts. NRO-to-NRE account transfers are explicitly excluded. Form A (CRR Return) Annex A updated for Commercial Banks [para 20(9)], SFBs [para 20(7)], and RRBs [para 20(6)]. UCBs and Rural Co-op Banks: para 21 amended; no Form A change prescribed. Provisions effective immediately.

Key Takeaways

  • RBI issued 5 simultaneous Third Amendment Directions (RBI/2026-27/145–149) on June 19, 2026 — one for each bank category
  • Fresh NRE term deposits of 3+ years tenor mobilised June 19–September 30, 2026 exempt from CRR and SLR
  • CRR exemption effective from reporting fortnight beginning July 16, 2026 (NDTL as on June 30, 2026)
  • Exemption covers original deposit amounts only, for as long as deposits remain on bank books
  • NRO-to-NRE account transfers explicitly excluded — will not qualify
  • Renewals upon maturity within the window qualify as fresh mobilisation
  • Form A (CRR Return) Annex A updated: CBs [para 20(9)], SFBs [para 20(7)], RRBs [para 20(6)] — new Item VIII.8 inserted; old VIII.8 renumbered VIII.9
  • UCBs and Rural Co-op Banks: para 21 amended (sub-para 6 inserted); no Form A change prescribed
RBI NRE Deposit CRR SLR Exemption June 2026 — Third Amendment Directions
Circulars Issued
RBI/2026-27/145–149
5 simultaneous circulars
Date Issued
June 19, 2026
Exemption Window
June 19 – Sep 30, 2026
CRR Exemption Effective
July 16, 2026
Fortnight beginning
Deposit Type
NRE Term Deposits
≥ 3 years tenor
Signatory
Manoranjan Padhy
Chief General Manager
✅ IMMEDIATE EFFECT — NRE DEPOSIT CRR/SLR EXEMPTION GRANTED
RBI has issued five simultaneous Third Amendment Directions dated June 19, 2026 exempting fresh NRE term deposits of three years or more mobilised between June 19 and September 30, 2026 from maintenance of CRR and SLR. The exemption applies to Commercial Banks, Small Finance Banks, Urban Co-operative Banks, Rural Co-operative Banks, and Regional Rural Banks. CRR exemption operates from the reporting fortnight beginning July 16, 2026 (based on NDTL as on June 30, 2026).

The Reserve Bank of India, through five simultaneous circulars dated June 19, 2026 — bearing RBI Circular Nos. RBI/2026-27/145 through RBI/2026-27/149 — and signed by Manoranjan Padhy, Chief General Manager, has issued the Third Amendment Directions to the CRR and SLR Directions, 2025 applicable to Commercial Banks, Small Finance Banks, Urban Co-operative Banks, Rural Co-operative Banks, and Regional Rural Banks. The Amendment Directions have been issued in exercise of powers conferred by Section 35A of the Banking Regulation Act, 1949, and pursuant to Section 42 of the Reserve Bank of India Act, 1934 and Sections 18 and 24 of the Banking Regulation Act, 1949 (read with Section 56 (AACS) for co-operative banks).

The amendments modify the respective RBI (Bank Category – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as updated on June 8, 2026. The core measure is a time-bound exemption from the maintenance of CRR and SLR for fresh Non-Resident (External) Rupee (NRE) term deposits of tenor of three years or more mobilised by banks between June 19, 2026 and September 30, 2026. The provisions come into force with immediate effect.

📋 REGULATORY FOUNDATION — ALL 5 CIRCULARS
COMMERCIAL BANKS
RBI/2026-27/145
DOR.RET.REC.123/12.01.001/2026-27
SMALL FINANCE BANKS
RBI/2026-27/146
DOR.RET.REC.124/12.01.001/2026-27
URBAN CO-OPERATIVE BANKS
RBI/2026-27/147
DOR.RET.REC.126/12.01.001/2026-27
RURAL CO-OPERATIVE BANKS
RBI/2026-27/148
DOR.RET.REC.127/12.01.001/2026-27
REGIONAL RURAL BANKS
RBI/2026-27/149
DOR.RET.REC.125/12.01.001/2026-27
STATUTORY POWERS
Section 35A, Banking Regulation Act, 1949; Section 42, RBI Act, 1934; Sections 18 & 24, Banking Regulation Act, 1949

The Core Measure: NRE Deposit CRR/SLR Exemption

📌 EXACT PROVISION INSERTED (identical across all 5 circulars, paragraph numbers vary)
"Fresh Non-Resident (External) Rupee (NRE) term deposits of tenor of three years or more mobilized (including deposits that are renewed upon maturity) by the banks between June 19, 2026 and September 30, 2026 are exempt from maintenance of CRR from the reporting fortnight beginning July 16, 2026 (i.e., based on the NDTL computation as on June 30, 2026) and subsequent fortnights thereafter. The exemption on reserves maintenance is available for the original deposit amounts till such time the deposits are held in the bank books. Any transfer from Non-Resident (Ordinary) (NRO) accounts to NRE accounts will not qualify for such exemptions."
🗓️ MOBILISATION WINDOW
Deposits must be mobilised between June 19, 2026 and September 30, 2026 (both dates inclusive). This includes deposits renewed upon maturity during this period.
⏱️ MINIMUM TENOR
Only NRE term deposits of tenor of three years or more qualify. Shorter-tenor NRE deposits do not attract this exemption.
📅 CRR EXEMPTION START
CRR exemption operates from the reporting fortnight beginning July 16, 2026, which is based on NDTL computation as on June 30, 2026 — and continues for subsequent fortnights thereafter.
💰 QUANTUM OF EXEMPTION
Exemption is available on the original deposit amounts till the deposits are held in the bank books. The benefit does not extend beyond the original deposit amount.
🚫 NRO TO NRE TRANSFERS EXCLUDED
Any transfer from Non-Resident (Ordinary) (NRO) accounts to NRE accounts will NOT qualify for this exemption. Only genuinely fresh mobilised or renewed NRE deposits are covered.
⚡ EFFECTIVE DATE
All five Amendment Directions come into force with immediate effect from June 19, 2026. No transition period.

Paragraph-wise Amendments Across All 5 Circulars

Bank CategoryCircular No.Amendment (i) — New Sub-ParaAmendment (ii) — Cross-Ref UpdateAmendment (iii) — Form A Update
Commercial BanksRBI/2026-27/145Para 20 — sub-para 9 inserted (NRE exemption)Para 29(5): "paras 20 (4)–(8)" → "paras 20 (4)–(9)"Annex A, Form A: VIII.8 → VIII.9; "NRE Term deposits – 2026 [para 20(9)]" inserted as new VIII.8
Small Finance BanksRBI/2026-27/146Para 20 — sub-para 7 inserted (NRE exemption)Para 29(5): "paras 20 (3)–(6)" → "paras 20 (3)–(7)"Annex A, Form A: VIII.8 → VIII.9; "NRE Term deposits – 2026 [para 20(7)]" inserted as new VIII.8
Urban Co-op BanksRBI/2026-27/147Para 21 — sub-para 6 inserted (NRE exemption)Para 29(4): "paras 21 (3), (4) and (5)" → "paras 21 (3), (4), (5) and (6)"Not applicable (no Form A amendment in this circular)
Rural Co-op BanksRBI/2026-27/148Para 21 — sub-para 6 inserted (NRE exemption)Para 29(4): "paras 21 (3), (4) and (5)" → "paras 21 (3), (4), (5) and (6)"Not applicable (no Form A amendment in this circular)
Regional Rural BanksRBI/2026-27/149Para 20 — sub-para 6 inserted (NRE exemption)Para 28(5): "paras 20 (3), (4) and (5)" → "paras 20 (3), (4), (5) and (6)"Annex A, Form A: VIII.8 → VIII.9; "NRE Term deposits – 2026 [para 20(6)]" inserted as new VIII.8

Before vs. After: Key Changes

AspectBefore (Prior to June 19, 2026)After (Third Amendment — June 19, 2026)
NRE Term Deposits (≥3 yrs) — CRR TreatmentNo specific exemption — included in NDTL for CRR computationExempt from CRR maintenance for deposits mobilised June 19 – Sep 30, 2026; effective from fortnight beginning July 16, 2026
NRE Term Deposits (≥3 yrs) — SLR TreatmentIncluded in NDTL for SLR computationExempt from SLR maintenance for qualifying deposits
NRO → NRE Account TransfersNot separately carved outExplicitly excluded — will NOT qualify for CRR/SLR exemption
Deposits Renewed at MaturityNot separately addressed for CRR/SLR exemptionExplicitly included — renewals upon maturity within the window qualify
Form A (CRR Return) — Item VIIIItem VIII.8 as previously numberedVIII.8 renumbered as VIII.9; new VIII.8 = "NRE Term deposits – 2026" (Commercial Banks, SFBs, RRBs only)
Cross-reference in DirectionsExisting para references in SLR maintenance provisionsUpdated to include new sub-paragraph in each bank category's respective Directions

Why This Exemption? Background and Policy Intent

📈 NRE Deposit Mobilisation Incentive
By exempting qualifying NRE term deposits from CRR and SLR, RBI reduces the effective cost of these liabilities for banks, incentivising active mobilisation of long-tenor NRE deposits from the Indian diaspora during the June–September 2026 window.
💱 Foreign Exchange Inflow Support
This measure is designed to support foreign exchange inflows into India. NRE deposits bring in foreign currency which is converted to rupees — providing RBI with forex reserves support and easing external account pressures.
🏦 Liquidity and Credit Deployment
With CRR and SLR exemption, banks can deploy the full amount of qualifying NRE deposits towards lending. This effectively increases the lendable resources of banks, supporting credit growth during the period.

Impact Analysis: Who Is Affected and How

COMMERCIAL BANKS
All scheduled commercial banks (including private, public sector, and foreign banks operating in India) must update their CRR and SLR computation methodology for qualifying NRE deposits. Form A (CRR Return) must be filed using the updated Annex A format with the new Item VIII.8 for NRE Term deposits – 2026 [para 20(9)].
SMALL FINANCE BANKS
SFBs which mobilise NRE term deposits of three-year or longer tenor will benefit. Form A return updated with new Item VIII.8 — "NRE Term deposits – 2026 [para 20(7)]". Given SFBs' focus on underserved segments, this may help diversify their deposit base through diaspora funds.
URBAN CO-OPERATIVE BANKS
UCBs authorised to accept NRE deposits benefit from the CRR/SLR exemption on qualifying three-year plus NRE deposits. Para 21 amended; no Form A change prescribed in this circular. UCBs must update their internal computation to carve out qualifying NRE deposits from NDTL for reserve maintenance.
RURAL CO-OPERATIVE BANKS
Rural co-operative banks (State Co-operative Banks and Central Co-operative Banks) authorized to mobilise NRE deposits must apply the exemption. Para 21 amended; no Form A change prescribed. Benefit extends for original deposit amounts till deposits are held in bank books.
REGIONAL RURAL BANKS
RRBs authorised to accept NRE deposits benefit from the exemption under para 20(6). Form A Annex A updated — new Item VIII.8 for "NRE Term deposits – 2026 [para 20(6)]". Given RRBs' limited capital base, this exemption provides meaningful liquidity benefit.
NRI DEPOSITORS
The exemption creates conditions for banks to potentially offer more competitive interest rates on long-tenor NRE deposits, given reduced regulatory burden cost. NRIs looking to lock in funds for three-plus years may benefit from better rates during this window. NRO-to-NRE transfers explicitly excluded.

Compliance Action Points

📌 FOR TREASURY / RESERVE MANAGEMENT TEAMS (ALL BANK CATEGORIES)
☐ Identify all NRE term deposits of three-year or longer tenor mobilised on or after June 19, 2026 — segregate these from CRR and SLR computation effective the fortnight beginning July 16, 2026 ☐ Ensure NDTL computation as on June 30, 2026 excludes qualifying NRE deposits for the July 16 fortnight CRR maintenance ☐ Track original deposit amounts separately — the exemption applies only to the original deposit amount, not accrued interest ☐ Flag and exclude any NRO-to-NRE account transfer amounts from the exemption — these explicitly do not qualify ☐ Continue monitoring qualifying deposits till September 30, 2026 — cutoff date for mobilisation; renewal at maturity within this window also qualifies
📌 FOR REPORTING / REGULATORY RETURNS TEAMS (Commercial Banks, SFBs, RRBs)
☐ Update Form A (CRR Return) — Annex A, Item VIII: renumber existing Item VIII.8 as VIII.9 and add new Item VIII.8 for "NRE Term deposits – 2026" ☐ Note the correct paragraph reference in Form A: para 20(9) for Commercial Banks; para 20(7) for SFBs; para 20(6) for RRBs ☐ Update reporting systems (CIMS) with revised Form A format before the July 16, 2026 fortnight return filing
📌 FOR COMPLIANCE / LEGAL TEAMS
☐ Update the applicable CRR/SLR Directions, 2025 (bank-category-specific) internal policy documents to incorporate the new sub-paragraphs ☐ For UCBs and Rural Co-operative Banks — update cross-reference in para 29(4) from "21(3),(4) and (5)" to "21(3),(4),(5) and (6)" ☐ Brief board/ALCO on the implications — particularly on NRE deposit mobilisation strategy for the June–September 2026 window
📌 FOR NRI/DEPOSIT PRODUCT TEAMS
☐ Review NRE deposit pricing — the CRR/SLR exemption reduces the effective cost of long-tenor NRE deposits; assess whether competitive rate adjustments are warranted ☐ Ensure new NRE deposit documentation and systems correctly capture tenor (must be 3+ years) and mobilisation date (must be June 19 – Sep 30, 2026) for exemption eligibility ☐ Do NOT advertise the exemption as applicable to NRO-to-NRE transfers — this is explicitly excluded and misclassification creates compliance risk
📎 SOURCE & REFERENCES
1. Commercial Banks: RBI/2026-27/145 | DOR.RET.REC.123/12.01.001/2026-27 | June 19, 2026
2. Small Finance Banks: RBI/2026-27/146 | DOR.RET.REC.124/12.01.001/2026-27 | June 19, 2026
3. Urban Co-operative Banks: RBI/2026-27/147 | DOR.RET.REC.126/12.01.001/2026-27 | June 19, 2026
4. Rural Co-operative Banks: RBI/2026-27/148 | DOR.RET.REC.127/12.01.001/2026-27 | June 19, 2026
5. Regional Rural Banks: RBI/2026-27/149 | DOR.RET.REC.125/12.01.001/2026-27 | June 19, 2026
Signatory: Manoranjan Padhy, Chief General Manager, Department of Regulation, RBI
Parent Directions Amended: RBI (respective bank category – CRR and SLR) Directions, 2025 (updated as on June 8, 2026)
Statutory Basis: Section 35A, Banking Regulation Act, 1949; Section 42, RBI Act, 1934; Sections 18 & 24, Banking Regulation Act, 1949
Disclaimer: This article is prepared for informational purposes only and does not constitute legal advice. Readers should refer to the original RBI circulars and consult qualified professionals before acting on this information. CorpLawUpdates.in is not responsible for any action taken in reliance on this content.
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