The Reserve Bank of India has published the Fourth Amendment Directions for Small Finance Banks, focusing on CRR and SLR requirements, which exempts new FCNR(B) deposits from these obligations.
RBI Introduces Fourth Amendment Directions for CRR and SLR in Small Finance Banks
On August 25, 2026, the Reserve Bank of India (RBI) issued the Fourth Amendment Directions (RBI/2026-27/239) for Small Finance Banks concerning the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
This amendment updates earlier Directions from June 19, 2026, removing the CRR and SLR maintenance requirements for fresh FCNR(B) deposits.
The RBI's objective is to enhance liquidity support for Small Finance Banks, ensuring their stability and capacity to handle foreign currency deposits.
Banking sector lawyers should remain informed about these changes to offer precise guidance on regulatory compliance and deposit strategy.
Citations
- RBI/2026-27/239 Reserve Bank of India