RBI cuts short the FCNR(B)/NRE deposit relief window to 31 August 2026: CRR-SLR exemption, interest-rate relaxation and priority-sector carve-out all end a month early
The temporary reliefs on fresh FCNR(B) deposits of three to five years and NRE term deposits of three years or more were to run until 30 September 2026. On 25 August 2026 RBI moved the end date to 31 August 2026 for the CRR/SLR exemption and the interest-rate relaxation. On 11 September 2026 the priority-sector (ANBC) exclusion was aligned to the same date.
Key facts
- In force
- Window ended 31 August 2026; amendments effective 25 August and 11 September 2026
- Who it affects
- NRIs holding FCNR(B) and NRE term deposits, commercial banks (treasury, liabilities and priority-sector teams)
- What it is
- Rule change
- Section
- FEMA & RBI
- Published
- 11 September 2026
In 30 seconds
- CRR/SLR exemption: fresh FCNR(B) deposits of 3–5 years now qualify if mobilised between 8 June 2026 and 31 August 2026; NRE term deposits of 3 years or more, between 19 June 2026 and 31 August 2026.
- Interest rates: the temporary withdrawal of the ceiling on 3–5 year FCNR(B) deposits and of the restriction on NRE deposit rates (3 years and above) runs from 17 June 2026 until 31 August 2026.
- Priority sector: advances against these deposits are excluded from Adjusted Net Bank Credit (ANBC) — introduced on 7 August 2026, and limited on 11 September 2026 to deposits raised up to 31 August 2026.
- In every case the earlier end date was 30 September 2026.
- Deposits renewed upon maturity within the window are covered in the same way as fresh deposits.
- All the amendments came into force with immediate effect on the day they were issued.
हिंदी में सार
RBI ने नए FCNR(B) (3–5 साल) और NRE (3 साल या अधिक) जमा पर दी गई अस्थायी राहतों की आख़िरी तारीख़ 30 सितंबर 2026 से घटाकर 31 अगस्त 2026 कर दी है। 25 अगस्त 2026 के संशोधनों से CRR/SLR छूट और ब्याज दर की ढील इसी तारीख़ तक सीमित हुई, और 11 सितंबर 2026 को priority sector के ANBC से ऐसे जमा के विरुद्ध दिए गए अग्रिम बाहर रखने की छूट भी इसी तारीख़ से जोड़ दी गई। निर्देशों में कारण के तौर पर सिर्फ़ “समीक्षा के बाद” लिखा है।
Before and now
30 September 2026
31 August 2026
The background, as the directions record it
After the Governor’s Statement of 5 June 2026, RBI introduced a US Dollar–Rupee swap facility for fresh FCNR(B) dollar funds mobilised for a minimum tenor of three years and a maximum of five years (circular dated 8 June 2026). Alongside, banks were given three temporary reliefs on such deposits and on long-tenor NRE term deposits. Each was to run until 30 September 2026.
On review, RBI has moved that end date to 31 August 2026.
The three reliefs and the new end date
| Relief | Deposits covered | Window now | Amending direction |
|---|---|---|---|
| Exemption from maintaining CRR and SLR | Fresh FCNR(B) deposits, minimum tenor three years and maximum five years | 8 June 2026 to 31 August 2026 | Commercial Banks – CRR and SLR Fourth Amendment Directions, 25 August 2026 (paragraph 20(8)) |
| Exemption from maintaining CRR and SLR | Fresh NRE term deposits of three years or more | 19 June 2026 to 31 August 2026 | Same directions (paragraph 20(9)) |
| Temporary withdrawal of the interest-rate ceiling | Fresh FCNR(B) deposits of 3–5 year tenors | 17 June 2026 until 31 August 2026 | Commercial Banks – Interest Rate on Deposits Third Amendment Directions, 25 August 2026 (paragraph 27(4)) |
| Temporary withdrawal of the restriction on interest rates | NRE deposits of 3 year and above tenors | 17 June 2026 until 31 August 2026 | Same directions (paragraph 32(7)) |
| Exclusion of advances from ANBC for priority-sector targets | Advances extended in India against the above FCNR(B) and NRE deposits | Deposits mobilised up to 31 August 2026 | Priority Sector Lending Third Amendment Directions, 11 September 2026 |
In each case, deposits that are renewed upon maturity are included.
The priority-sector piece
The priority-sector carve-out came in two steps. On 7 August 2026, the Priority Sector Lending – Targets and Classification Second Amendment Directions, 2026 provided that advances extended in India against these fresh FCNR(B) and NRE deposits would be excluded from the calculation of Adjusted Net Bank Credit — the base on which priority-sector targets are computed. Item VI of the table at paragraph 6.1 of the 2025 Directions was modified and footnote 3 (the 2013–14 base-date method) was deleted.
On 11 September 2026, the Third Amendment Directions changed “September 30, 2026” to “August 31, 2026” for this exclusion too, and linked item VI to the CRR/SLR amendment directions as now amended. The note to the item says the amount excluded from ANBC shall not exceed the FCNR(B)/NRE deposits eligible for exemption from CRR/SLR.
What the documents do not say
None of the four directions gives a reason beyond “on review”. They do not say anything about the swap facility itself, and they do not alter the treatment of deposits already mobilised within the window.
What banks and depositors should note
- A deposit qualifies for the CRR/SLR exemption only if it was mobilised (or renewed on maturity) on or before 31 August 2026.
- The relaxation on interest rates for the specified FCNR(B) and NRE deposits was in place only until 31 August 2026.
- Banks computing ANBC should exclude advances only against deposits raised within the shortened window, and not beyond the eligible deposit amount.
Questions and answers
Until what date could banks raise FCNR(B) deposits exempt from CRR and SLR?
Fresh FCNR(B) deposits of minimum three and maximum five years’ tenor qualify if mobilised (including renewals on maturity) between 8 June 2026 and 31 August 2026. The earlier end date was 30 September 2026.
Does the same date apply to NRE deposits?
Yes. Fresh NRE term deposits of three years or more qualify for the CRR/SLR exemption if mobilised between 19 June 2026 and 31 August 2026.
What happened to the relaxation on interest rates?
The temporary withdrawal of the interest-rate ceiling on 3–5 year FCNR(B) deposits and of the restriction on rates on NRE deposits of three years and above, effective 17 June 2026, now runs until 31 August 2026 instead of 30 September 2026.
How does this affect priority-sector targets?
Advances extended in India against the qualifying FCNR(B) and NRE deposits are excluded from Adjusted Net Bank Credit. After the 11 September 2026 amendment, this covers deposits raised up to 31 August 2026, and the excluded amount cannot exceed the deposits eligible for the CRR/SLR exemption.
Why did RBI shorten the window?
The directions only say the decision was taken “on review”. No further reason is given in the documents.
Published 11 September 2026. Updated 7 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.