The Reserve Bank of India has announced the third amendment to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for regional rural banks, affecting NRE term deposits.
RBI Amends Cash Reserve Ratio and Statutory Liquidity Ratio for Regional Rural Banks
On June 19, 2026, the Reserve Bank of India (RBI) published the third amendment to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for regional rural banks. This adjustment follows a review of previous guidelines and aims to enhance liquidity management in the banking sector.
The amendment specifically addresses the handling of fresh Non-Resident (External) Rupee (NRE) term deposits, impacting the regulatory framework under which these banks operate.
This regulatory change is crucial as it helps stabilize liquidity within regional rural banks, fostering improved financial health and operational capabilities.
Banking legal advisors should carefully review these amendments to ensure compliance and to ascertain potential impacts on deposit-taking and lending practices in regional rural banks.
Citations
- RBI Amendments (2026) RBI/2026-27/149
