RBI Exempts Select NRE Deposits from CRR and SLR Requirements

  • Blog|News|FEMA & Banking|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 22 June, 2026

Latest from Taxmann

NRE Deposits Exempt

Notification No. RBI/2026-27/146 DOR.RET.REC.124/12.01.001/2026-27, Dated 19-06-2026

The Reserve Bank of India (RBI) has amended the Cash Reserve Ratio (CRR) Directions and Statutory Liquidity Ratio (SLR) Directions applicable to Commercial Banks, Small Finance Banks, Regional Rural Banks, Urban Co-operative Banks and Rural Co-operative Banks. The amendments provide a temporary exemption from CRR and SLR requirements for specified fresh Non-Resident External (NRE) term deposits.

1. Exemption for Fresh NRE Term Deposits

Under the amended framework, fresh NRE term deposits with a tenor of three years or more shall be exempt from the requirement of maintaining:

  • Cash Reserve Ratio (CRR); and
  • Statutory Liquidity Ratio (SLR).

The exemption is intended to encourage mobilisation of long-term non-resident deposits.

2. Eligible Deposits

The exemption shall apply to:

  • Fresh NRE term deposits mobilised between 19-06-2026 and 30-09-2026; and
  • Existing NRE term deposits renewed during the same period,

provided the deposits have a maturity period of three years or more.

3. Extent of the Exemption

The benefit shall be available only in respect of the original deposit amount.

Accordingly, the CRR and SLR exemption will not extend to any subsequent additions or enhancements made to the deposit amount.

4. Transfers from NRO Accounts Not Covered

The RBI has specifically clarified that the exemption shall not apply to funds transferred from Non-Resident Ordinary (NRO) accounts to NRE accounts.

Only eligible fresh deposits or renewals meeting the prescribed conditions will qualify for the relaxation.

5. Objective of the Measure

The amendment seeks to:

  • Encourage inflows of stable non-resident deposits;
  • Strengthen foreign currency and external sector resources;
  • Enhance liquidity available with banks; and
  • Support the banking system through temporary regulatory relief.

6. Key Takeaway

RBI has exempted fresh NRE term deposits of three years or more, mobilised or renewed between 19 June 2026 and 30 September 2026, from CRR and SLR requirements. The exemption applies only to the original deposit amount and does not cover transfers from NRO accounts to NRE accounts.

Click Here To Read The Full Notification

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann editorial team

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied