Summary: The Reserve Bank of India (RBI), through RBI/2026-27/239, DOR.RET.REC.206/12.01.001/2026-27 dated August 25, 2026, issued the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026. The amendment modifies the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025, under which exemption from maintenance of CRR and SLR was provided for specified fresh FCNR(B) deposits and fresh Non-Resident (External) Rupee (NRE) term deposits. The FCNR(B) deposits covered by the earlier provision are deposits having a minimum tenor of three years and maximum tenor of five years, while the NRE term deposits have a tenor of three years or more. The deposits covered include those renewed upon maturity. The earlier exemption period for FCNR(B) deposits ran from June 8, 2026 to September 30, 2026, while the corresponding period for NRE term deposits ran from June 19, 2026 to September 30, 2026. The RBI has, on review, decided to replace the common end date of September 30, 2026 with August 31, 2026. Accordingly, paragraph 20(6) is amended to substitute the period “between June 8, 2026 and August 31, 2026”, and paragraph 20(7) is amended to substitute “between June 19, 2026 and August 31, 2026”. The Directions are issued under 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 of the Banking Regulation Act, 1949. The amendment directions come into force with immediate effect.
Reserve Bank of India
RBI/2026-27/239
DOR.RET.REC.206/12.01.001/2026-27 | Dated: August 25, 2026
Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026
Please refer to the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (updated as on June 19, 2026) wherein exemption from CRR and SLR maintenance have been provided to fresh FCNR(B) deposits of minimum tenor of three years and maximum tenor of five years and fresh Non-Resident (External) Rupee (NRE) term deposits of tenor of three years or more mobilized (including deposits that are renewed upon maturity) by the banks between June 8, 2026 to September 30, 2026 and June 19, 2026 to September 30, 2026 respectively. On review, it has been decided to amend the date “September 30, 2026” to the date “August 31, 2026” for the aforesaid exemptions.
2. 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 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.
3. These Directions shall be called the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026.
4. The provisions shall come into force with immediate effect.
5. These Amendment Directions modify the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
i. In paragraph 20(6), the words “between June 8, 2026 and September 30, 2026” shall be substituted with “between June 8, 2026 and August 31, 2026”.
ii. In paragraph 20(7), the words “between June 19, 2026 and September 30, 2026” shall be substituted with “between June 19, 2026 and August 31, 2026”.
Yours faithfully,
(Manoranjan Padhy)
Chief General Manager
