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Informist, Friday, Aug. 7, 2026

MUMBAI – The Reserve Bank of India on Friday amended its priority sector lending norms to exclude advances extended against certain fresh Foreign Currency Non-Resident (Bank), or FCNR(B), deposits and Non-Resident (External), or NRE, term deposits from the calculation of adjusted net bank credit, for computing priority sector lending targets. The amendment takes effect immediately. 

The move aligns the priority sector framework with the central bank's June measures aimed at attracting foreign currency deposits. Under the revised directions, banks can exclude advances against fresh FCNR(B) deposits with a minimum tenor of three years and a maximum tenor of five years mobilised between Jun. 8 and Sept. 30. The exclusion also applies to advances against fresh non-resident term deposits with a tenor of three years or more mobilised between Jun. 19 and Sept. 30.

The RBI said the eligible deposits are those that qualify for exemption from cash reserve ratio and statutory liquidity ratio requirements under the June amendment directions. It added that the amount excluded from adjusted net bank credit for priority sector lending computation cannot exceed the value of fresh deposits eligible for the CRR and SLR exemption. End

Reported by Kabir Sharma

Edited by Deepshikha Bhardwaj

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