Summary: The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026 on August 25, 2026, revising the timeline applicable to specified exemptions from maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for commercial banks.
The amendment modifies the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026, under which fresh FCNR(B) deposits having a minimum tenor of three years and maximum tenor of five years, including deposits renewed upon maturity, mobilized by banks between June 8, 2026 and September 30, 2026 were granted exemption from CRR and SLR maintenance. The NRE deposit exemption was subsequently introduced through the Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Third Amendment Directions, 2026, covering fresh NRE term deposits of three years or more mobilized between June 19, 2026 and September 30, 2026.
Under the Fourth Amendment Directions, the end date of September 30, 2026 has been replaced with August 31, 2026 for both categories. Accordingly, the applicable FCNR(B) exemption window is now June 8, 2026 to August 31, 2026, while the NRE exemption window is June 19, 2026 to August 31, 2026.
The amendment has been issued under Section 35A of the Banking Regulation Act, 1949, read with Section 42 of the Reserve Bank of India Act, 1934 and Sections 18 and 24 of the Banking Regulation Act, 1949. TaxGuru coverage of the statutory CRR/SLR framework also records Sections 18 and 24 in relation to CRR and SLR requirements. ([TaxGuru][1])
The Fourth Amendment Directions further provide that they come into force with immediate effect. The underlying Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 constitute the principal framework being modified. ([TaxGuru][2])
The specific amendments substitute the dates in paragraph 20(8) and paragraph 20(9). Paragraph 20(8), concerning fresh FCNR(B) deposits, now refers to deposits mobilized between June 8, 2026 and August 31, 2026. Paragraph 20(9), concerning fresh NRE term deposits of three years or more, now refers to deposits mobilized between June 19, 2026 and August 31, 2026. Thus, the principal regulatory consequence is an earlier cut-off date for qualifying deposits under both exemptions.
RESERVE BANK OF INDIA
RBI/2026-27/238
DOR.RET.REC.205/12.01.001/2026-27| August 25, 2026
Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026**
Please refer to the Reserve Bank of India (Commercial 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 (Commercial 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 (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:
i. In paragraph 20(8), 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(9), 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
