More Stories

Informist, Tuesday, Aug. 25, 2026

--RBI: CRR, SLR exemptions under FCNR(B) deposit scheme only till Aug 31 

--CONTEXT: Jun 8-Sept 30 FCNR(B) deposits had CRR, SLR exemptions earlier 
--RBI: CRR, SLR exemptions under NRE deposit scheme only till Aug 31 

NEW DELHI – The Reserve Bank of India has curtailed the window for exemption from cash reserve ratio and statutory liquidity ratio maintenance on fresh foreign currency non-resident bank and non-resident (external) rupee term deposits to Aug. 31 from Sept. 30 earlier, with immediate effect, the central bank said in a release Tuesday. 

On Jun. 19, the RBI had exempted banks' non-resident (external) rupee term deposits of three years or more mobilised from Jun. 19 to Sept. 30 from CRR and SLR computation. Earlier, it had exempted fresh FCNR(B) deposits of three-to-five-year tenor mobilised from Jun. 8 to Sept. 30 from the regulatory requirements as part of measures to attract foreign capital into India. 

The move comes after the Reserve Bank of India advanced the closure of the swap facility for FCNR (B) deposits mobilised till Aug. 31 from Sept. 30 earlier. The central bank had said that based on the encouraging response to the swap facility for FCNR(B) deposits and the resultant forex inflows, it has been decided that the facility will be available only for deposits mobilised till Aug. 31. Banks can avail swaps under the FCNR(B) window with the RBI till Sept. 11, it added.

In June, the central bank had announced a host of measures, including a facility to cover full hedging cost for banks raising fresh three-to-five-year FCNR(B) deposits. The swap facility, which came into effect on Jun. 8, was earlier open till Oct. 16 for deposits mobilised between Jun. 8 and Sept. 30. 

However, the RBI's swap facilities for the external commercial borrowings of public-sector undertakings and offshore foreign currency borrowings of banks, offering a concessional rate of 1.5% per annum, will remain open till Dec. 31, as announced earlier, the RBI said. 

The Reserve Bank of India's measures to boost foreign capital inflows had attracted $72.85 billion from Jun. 8 till Friday, the central bank said Saturday. Nearly 90% of these inflows came from FCNR(B) deposits at $65.40 billion.  The RBI had set a target of raising $90 billion through the three facilities by the end of 2026, sources had told Informist.

About a week before announcing the scheme's early closure, RBI Governor Sanjay Malhotra said there was no proposal to close the FCNR(B) deposit scheme ahead of schedule.  End

US$1 = INR 95.4125

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Vaishali Tyagi

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.