The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026, with immediate effect from June 8, 2026. The amendment follows the Governor’s June 5, 2026 announcement introducing a US Dollar-Rupee swap facility for fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] dollar funds. Under the revised directions, fresh FCNR(B) deposits, including renewals upon maturity, mobilized by urban co-operative banks between June 8, 2026 and September 30, 2026, with a minimum tenure of three years and a maximum tenure of five years, will be exempt from maintaining Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). The CRR exemption will apply from the reporting fortnight beginning July 1, 2026, based on NDTL computation as of June 15, 2026. The benefit remains available on the original deposit amount for as long as the deposits remain on the bank’s books, encouraging foreign currency inflows and enhancing liquidity.
Reserve Bank of India
RBI/2026-27/104
DOR.RET.REC.86/12.01.001/2026-27 | June 08, 2026
Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and statutory Liquidity Ratio) Second Amendment Directions, 2026
Please refer to the Governor’s Statement dated June 5, 2026, wherein it has been decided to introduce a US Dollar-Rupee swap facility for fresh Foreign Currency Non-Resident (Bank) [FCNR (B)] dollar funds, mobilised for a minimum tenor of three years and maximum tenor of five years.
2. In this connection, please refer to the Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on January 22, 2026). It has been decided that fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilized (including deposits that are renewed upon maturity) by the banks from the date of this Amendment Directions till September 30, 2026 will be exempted from maintenance of CRR and SLR.
3. Accordingly, in exercise of the 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, read with section 56 (AACS), of Banking Regulation Act, 1949, as amended from time to time, and all other provisions / laws enabling the Reserve Bank of India in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
4. These Directions shall be called the Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026.
5. The provisions shall come into force with immediate effect.
6. These Amendment Directions modify the Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
i. In paragraph 21, the sub-paragraph “5. Fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilized (including deposits that are renewed upon maturity) by the banks between June 8, 2026 and September 30, 2026 are exempt from maintenance of CRR from the reporting fortnight beginning July 1, 2026 (i.e., based on the NDTL computation as on June 15, 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” shall be inserted.
ii. In paragraph 29(4), the words ‘paragraphs 21(3) and (4)’ shall be substituted with ‘paragraphs 21(3), (4) and (5)’.
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
