The RBI's Fourth Amendment Directions focus on CRR and SLR for small finance banks, offering critical exemptions.
RBI Issues Fourth Amendment Directions for Small Finance Banks on CRR and SLR
On August 25, 2026, the Reserve Bank of India published the 'RBI (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026.' This amendment revises existing CRR and SLR regulations from 2025, emphasizing the treatment of FCNR(B) deposits.
This latest direction exempts small finance banks from maintaining CRR and SLR for fresh FCNR(B) deposits, thereby allowing them better liquidity management and enabling them to serve their customer base more effectively.
As these changes unfold, practitioners should be aware of the enhanced flexibility allowed under these regulations. This could lead to greater operational efficiencies and improved market positioning for small finance banks.
Citations
- Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions (2026)