Summary: The Reserve Bank of India has issued the Reserve Bank of India (Priority Sector Lending – Targets and Classification) Third Amendment Directions, 2026, dated September 11, 2026. The amendment modifies the treatment of specified advances against fresh FCNR(B) and NRE deposits for computation of Adjusted Net Bank Credit (ANBC) for priority sector lending purposes. The amendment follows the earlier Second Amendment Directions issued on August 7, 2026, under which qualifying advances against fresh FCNR(B) deposits of a minimum three-year and maximum five-year tenor, and advances against NRE term deposits of three years or more, were to be excluded from ANBC subject to specified mobilisation periods.
The present amendment changes the terminal date for the aforesaid exemptions from September 30, 2026 to August 31, 2026. Consequently, Item VI in the table under paragraph 6.1 of the Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025, updated as on August 7, 2026, is partially modified. The amended provision refers to advances in India against fresh FCNR(B)/NRE deposits qualifying for exemption from CRR and SLR requirements under the relevant RBI Amendment Directions.
The amendment also clarifies that the amount excluded from ANBC for computation of priority sector targets cannot exceed the fresh outstanding FCNR(B)/NRE deposits eligible for exemption from maintenance of CRR/SLR under the applicable Amendment Directions. The amendment comes into force with immediate effect.
Reserve Bank of India
RBI/2026-27/256 FIDD.CO.PSD.BC.No.10/04.09.001/2026-27 | Dated: September 11, 2026
Reserve Bank of India (Priority Sector Lending – Targets and Classification) Third Amendment Directions, 2026
Please refer to Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025 (Priority Sector Lending – Targets and Classification) Second Amendment Directions, 2026 issued on August 7, 2026, specifying that the following advances extended in India would be excluded from calculation of Adjusted Net Bank Credit (ANBC):
a) advances against the fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilised (including deposits that are renewed upon maturity) by the banks between June 08, 2026 and September 30, 2026, and
b) advances against NRE term deposits of three years or more mobilised (including deposits that are renewed upon maturity) by the banks between June 19, 2026 and September 30, 2026.
On a review, it has been decided to amend the date “September 30, 2026” to the date “August 31, 2026” for the aforesaid exemptions. Accordingly, the Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025 (Updated as on August 07, 2026) stand amended as below:
i. Item no. VI in the table at paragraph 6.1 shall be partially modified as below:
“Advances extended in India against out of the fresh FCNR (B) / NRE deposits (including deposits that are renewed upon maturity), qualifying for exemption from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements, as per the Reserve Bank of India (Cash Reserve Ratio and Statutory Liquidity Ratio) Second and Third Fourth Amendment Directions dated June 08, 2026 and June 19, 2026 August 25, 2026, as applicable to various banks.
Note: The amount to be excluded from ANBC for computation of priority sector targets shall not exceed the fresh outstanding FCNR (B) / NRE deposits eligible for exemption from maintenance of CRR / SLR in terms of the above Amendment Directions.”
3. The above amendment shall come into force with immediate effect.
Yours faithfully,
(Nisha Nambiar)
Chief General Manager-in-Charge
