In a move aimed at attracting foreign currency inflows, the Reserve Bank of India (RBI) has exempted fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements for both Urban Cooperative Banks (UCBs) and Rural Cooperative Banks.
According to RBI’s amendment directions issued on Monday, the exemption will apply to fresh FCNR(B) deposits mobilised between June 8 and September 30, 2026.
The deposits must have a minimum tenor of three years and a maximum tenor of five years. The benefit will also extend to eligible deposits renewed upon maturity.
The move follows RBI Governor’s June 5 announcement regarding the introduction of a US Dollar-Rupee swap facility for fresh FCNR(B) dollar funds with maturities ranging from three to five years.
Under the revised norms, eligible FCNR(B) deposits will be exempt from both CRR and SLR requirements for as long as the original deposit amount remains on the bank’s books. The CRR exemption will take effect from the reporting fortnight beginning July 1, 2026, based on NDTL computation as on June 15, 2026.
The amended directions have come into force with immediate effect.
