The Reserve Bank of India has announced the Fourth Amendment Directions for Rural Co-operative Banks concerning the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). This amendment exempts fresh FCNR(B) deposits from CRR and SLR maintenance.
RBI Introduces Fourth Amendment Directions for CRR and SLR in Rural Co-operative Banks
On August 25, 2026, the Reserve Bank of India (RBI) issued the Fourth Amendment Directions (RBI/2026-27/242) for Rural Co-operative Banks regarding the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
This amendment updates previous Directions from June 19, 2026, establishing an exemption for fresh FCNR(B) deposits from maintenance obligations for CRR and SLR.
Such exemptions are part of the RBI’s strategy to provide liquidity support and promote healthy deposits within the Rural Co-operative Banking sector.
Legal practitioners operating in banking should remain abreast of these changes to effectively advise clients regarding compliance and operational requirements.
Citations
- RBI/2026-27/242 Reserve Bank of India