The Reserve Bank of India (RBI) on June 08, 2026, notified the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026 to amend the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025.
The following has been stated:-
•The Reserve Bank of India has amended the Small Finance Banks – Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) Directions, 2025 to support the mobilization of foreign currency deposits.
•Pursuant to the Governor’s Statement dated June 05, 2026, fresh FCNR(B) deposits in US dollars with a minimum tenor of three years and maximum tenor of five years, mobilized or renewed between June 08, 2026 and September 30, 2026, will be exempt from CRR and SLR requirements.
•The CRR exemption will apply from the reporting fortnight beginning July 01, 2026 and will remain available for the original deposit amounts as long as they remain on the bank’s books.
•The amendment also updates cross-references in the Directions to include the newly inserted exemption provision.
•Further, reporting formats under Annex A to Form A have been revised to incorporate a separate disclosure item for FCNR(B) deposits eligible for the 2026 exemption.
•The Directions have come into force with immediate effect.
The detailed notification is given in the document below.
[Notification No.: RBI/2026-27/103 DOR.RET.REC.85/12.01.001/2026-27]
