The RBI has released the Fourth Amendment Directions regarding Cash Reserve Ratio and Statutory Liquidity Ratio for rural co-operative banks, offering necessary exemptions.
RBI Issues Fourth Amendment Directions for Rural Co-operative Banks on CRR and SLR
On August 25, 2026, the Reserve Bank of India published the 'RBI (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026.' This amendment provides important updates to the CRR and SLR guidelines established in 2025, focusing on the treatment of FCNR(B) deposits.
Specifically, this amendment exempts rural co-operative banks from maintaining CRR and SLR for fresh FCNR(B) deposits, aimed at easing liquidity constraints and promoting the sustainability of these banks.
Legal and financial professionals within the banking sector should recognize the implications of this change. The exemption provisions will allow rural co-operative banks to utilize their resources more effectively, potentially leading to improved operational conditions and greater support for local economies.
Citations
- Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions (2026)