RBI Relaxes CRR and SLR Norms for FCNR(B) Deposits to Boost Forex Inflows
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- Last Updated on 11 June, 2026
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RBI/2026-27/102 DOR.RET.REC.84/12.01.001/2026-27, Dated, 08-06-2026
The Reserve Bank of India (RBI) has announced a temporary relaxation in reserve requirements for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits to encourage additional foreign currency inflows into the banking system.
The measure applies to eligible FCNR(B) deposits raised between 08 June 2026 and 30 September 2026 and complements the RBI’s recently introduced USD-INR Forex Swap Facility.
1. Exemption From CRR and SLR Requirements
Under the relaxation, banks will not be required to maintain:
- Cash Reserve Ratio (CRR); and
- Statutory Liquidity Ratio (SLR)
on eligible fresh FCNR(B) deposits mobilised during the specified period.
This exemption is expected to reduce the cost of mobilising foreign-currency deposits and provide greater flexibility for banks in attracting overseas funds.
2. Applicable Period
The exemption applies to:
- Fresh FCNR(B) deposits raised between 08 June 2026 and 30 September 2026; and
- Eligible renewals of such deposits during the specified period.
Only deposits that meet the prescribed eligibility criteria will qualify for the relaxation.
3. Deposits Covered Under the Scheme
The benefit is available for FCNR(B) deposits having a tenor of:
- Three years to five years
Accordingly, banks can avail the CRR and SLR exemption only in respect of eligible deposits falling within this maturity range.
4. Objective – Encourage Additional NRI Deposits
The RBI has introduced the measure with the objective of encouraging banks to mobilise additional foreign currency deposits from:
- Non-Resident Indians (NRIs); and
- Other eligible overseas depositors under the FCNR(B) scheme.
The relaxation is expected to make FCNR(B) deposits more attractive for banks and facilitate greater foreign currency resource mobilisation.
5. Complementary Measure to USD-INR Swap Facility
The CRR and SLR exemption complements the RBI’s recently announced:
US Dollar–Rupee Forex Swap Facility
Together, these measures are intended to strengthen foreign exchange inflows, improve foreign currency liquidity and support external sector stability.
6. Expected Impact
The relaxation is likely to:
- Encourage banks to actively mobilise FCNR(B) deposits;
- Increase foreign currency inflows into India;
- Enhance foreign exchange reserves and liquidity;
- Reduce funding costs associated with FCNR(B) deposits; and
- Support overall stability in the foreign exchange market.
7. Objective of the RBI Measure
The RBI’s decision seeks to attract additional foreign currency resources into the banking system by reducing regulatory costs associated with FCNR(B) deposits.
By exempting eligible deposits from CRR and SLR requirements and pairing the measure with the USD-INR swap facility, the RBI aims to strengthen foreign exchange inflows, support liquidity management and reinforce India’s external sector resilience.
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