The Reserve Bank of India has published the Fourth Amendment Directions for Urban Co-operative Banks regarding the CRR and SLR requirements. The amendment exempts new FCNR(B) deposits from these maintenance ratios.
RBI Announces Fourth Amendment Directions for CRR and SLR in Urban Co-operative Banks
On August 25, 2026, the Reserve Bank of India (RBI) issued the Fourth Amendment Directions (RBI/2026-27/241) for Urban Co-operative Banks concerning the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
This amendment updates previous directions from June 19, 2026, providing an exemption for fresh FCNR(B) deposits from maintaining CRR and SLR ratios.
This measure is seen as a means to bolster liquidity within Urban Co-operative Banks and facilitate the management of foreign currency deposits.
Legal professionals in the banking sector should familiarize themselves with these amendments as they may impact compliance and advisory practices.
Citations
- RBI/2026-27/241 Reserve Bank of India