RBI Circulars, Decoded in Plain Language

RBI/2026-27/248

Reserve Bank of India (Rural Co-operative Banks – Interest Rate on Deposits) Second Amendment Directions, 2026

The Reserve Bank of India has issued an amendment shortening the period of temporary relaxation on interest rate ceilings for certain foreign currency deposits for Rural Co-operative Banks. The relaxation, which covered fresh FCNR(B) deposits of 3-5 year tenors and NRE deposits of 3 years and above, was originally set to expire on September 30, 2026. It will now conclude earlier, on August 31, 2026. Rural Co-operative Banks must ensure their deposit interest rate policies comply with the original directions from September 1, 2026.

#Rural Co-operative Banks #Interest Rates

RBI/2026-2027/247

Reserve Bank of India (Urban Co-operative Banks – Interest Rate on Deposits) Third Amendment Directions, 2026

The Reserve Bank of India has issued an amendment curtailing the temporary relaxation on interest rate ceilings for FCNR(B) and NRE deposits offered by Urban Co-operative Banks (UCBs). This relaxation, initially valid until September 30, 2026, will now conclude on August 31, 2026. UCBs must revert to the original interest rate directions for these specific foreign currency deposits from September 1, 2026, requiring immediate adjustments to their deposit product offerings and treasury strategies.

#Urban Co-operative Banks #UCB

RBI/2026-27/246

Reserve Bank of India (Regional Rural Banks – Interest Rate on Deposits) Third Amendment Directions, 2026

The Reserve Bank of India has issued an amendment shortening the temporary relaxation period for interest rate ceilings on specific FCNR(B) and NRE deposits offered by Regional Rural Banks (RRBs). Initially set to expire on September 30, 2026, this relaxation will now cease on August 31, 2026. RRBs must promptly revert to the previous interest rate restrictions for fresh FCNR(B) deposits (3-5 year tenors) and NRE deposits (3 years and above, including renewals) by the revised deadline. This amendment has immediate effect, requiring swift action from affected banks.

#Regional Rural Banks #RRB

RBIMedium

RBI/2026-2027/245

Reserve Bank of India (Local Area Banks – Interest Rate on Deposits) Third Amendment Directions, 2026

The Reserve Bank of India (RBI) has issued a Third Amendment to the Directions governing interest rates on deposits for Local Area Banks (LABs). This amendment shortens the temporary relaxation period for interest rate ceilings on fresh FCNR(B) deposits of 3-5 year tenors and restrictions on NRE deposits of 3 years and above tenors. Originally set to expire on September 30, 2026, the relaxation will now conclude a month earlier, on August 31, 2026. LABs must therefore re-impose the specified interest rate restrictions for these deposit types from September 1, 2026, requiring immediate operational and system adjustments.

#Local Area Banks #Interest RatesSign in →

RBI/2026-2027/244

Reserve Bank of India (Small Finance Banks – Interest Rate on Deposits) Third Amendment Directions, 2026

The Reserve Bank of India has amended its directions for Small Finance Banks (SFBs), shortening the temporary relaxation on interest rate ceilings for FCNR(B) deposits (3-5 year tenors) and restrictions on NRE deposits (3 years and above). Originally set to expire on September 30, 2026, these relaxations will now cease on August 31, 2026. SFBs must revert to the original interest rate regulations for these deposit categories starting September 1, 2026, requiring immediate adjustments to their deposit offerings and funding strategies.

#Small Finance Banks #SFBSign in →

RBI/2026-2027/243

Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Third Amendment Directions, 2026

The Reserve Bank of India (RBI) has shortened the temporary period during which interest rate ceilings on fresh FCNR(B) deposits of 3-5 year tenors and NRE deposits of 3 years and above were withdrawn. Originally set to expire on September 30, 2026, this temporary relaxation will now conclude a month earlier, on August 31, 2026. Commercial banks must revert to the original interest rate regulations for these specific deposit categories from September 01, 2026.

#Deposits #Interest RatesSign in →

RBI/2026-27/242; DOR.RET.REC.209/12.01.001/2026-27

Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026

The Reserve Bank of India has issued an amendment curtailing the period for CRR and SLR exemptions on certain NRI deposits for Rural Co-operative Banks. The exemption for fresh FCNR(B) and NRE term deposits, originally valid until September 30, 2026, will now conclude earlier, on August 31, 2026. This means that deposits mobilized or renewed from September 1, 2026, onwards will no longer qualify for these statutory reserve exemptions. Rural Co-operative Banks must immediately update their operational procedures and deposit offerings to reflect this revised deadline.

#Rural Co-operative Banks #CRRSign in →

RBIHigh

RBI/2026-27/241

Reserve Bank of India (Urban Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026

The Reserve Bank of India (RBI) has curtailed the period for Urban Co-operative Banks (UCBs) to avail exemptions from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) maintenance on fresh FCNR(B) and Non-Resident (External) Rupee (NRE) term deposits. The exemption, previously available until September 30, 2026, will now conclude on August 31, 2026. This amendment is effective immediately, requiring UCBs to adjust their deposit mobilization strategies accordingly and cease taking advantage of the exemption after the revised deadline. This move reflects a potential shift in the RBI's liquidity and foreign exchange management stance.

#Urban Co-operative Banks #UCBSign in →

RBIMediumOverdue

RBI/2026-27/240

Reserve Bank of India (Regional Rural Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026

The Reserve Bank of India has issued an amendment, effective immediately, shortening the period for Regional Rural Banks (RRBs) to avail CRR and SLR exemptions on fresh FCNR(B) and NRE term deposits. The window for mobilizing these specific deposits, previously open until September 30, 2026, has now been curtailed to August 31, 2026. This means RRBs have a significantly reduced timeframe to benefit from these regulatory relaxations, impacting their deposit mobilization strategies for these categories.

#CRR #SLRSign in →

RBI/2026-2027/239

Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026

The Reserve Bank of India has shortened the period during which Small Finance Banks (SFBs) can avail exemptions from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) on fresh FCNR(B) and NRE term deposits. Originally set to expire on September 30, 2026, the exemption window for mobilizing these deposits has been curtailed to August 31, 2026. SFBs must urgently adjust their deposit mobilization strategies to benefit from these reduced reserve requirements within the revised, shorter timeframe.

#Small Finance Banks #SFBSign in →

RBI/2026-2027/238

Reserve Bank of India (Commercial Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026

The Reserve Bank of India (RBI) has prematurely withdrawn the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) exemptions on fresh FCNR(B) and NRE term deposits. Originally set to expire on September 30, 2026, the exemption period has been shortened to August 31, 2026. This amendment impacts commercial banks by increasing the cost of foreign currency deposits mobilized after the new deadline, signaling a calibrated withdrawal of previous liquidity support measures.

#CRR #SLRSign in →

RBIMediumOverdue

RBI/2026-2027/237

Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Fourth Amendment Directions, 2026

The RBI has issued the Fourth Amendment Directions to its Concentration Risk Management framework for NBFCs. This amendment extends the large exposure limits previously applicable to NBFC-Infrastructure Finance Companies (NBFC-IFC) to all Infrastructure Debt Fund-Non-Banking Financial Companies (IDF-NBFCs) classified under the Upper Layer. This move aims to standardize and strengthen concentration risk management for systemically important NBFCs engaged in infrastructure financing, bringing immediate effect to the revised regulations.