RBI/2026-27/232
FIDD.CO.PSD.BC.No.08/04.09.001/2026-27 August 07, 2026 Reserve Bank of India (Priority Sector Lending – Targets and Classification) Second Amendment Directions, 2026 Please refer to the Governor’s Statement dated June 5, 2026, and RBI circular FMOD.MAOG.No.S-56/01.06.016/2026-27 dated June 08, 2026 on ‘Swap Facility for FCNR (B) Deposits’, wherein it has been decided to introduce a US Dollar-Rupee swap facility for fresh Foreign Currency Non-Resident (Bank) [FCNR (B)] dollar funds, mobilised for a minimum tenor of three years and maximum tenor of five years. 2. Further, reference is also invited to the Reserve Bank of India (Cash Reserve Ratio and Statutory Liquidity Ratio) Second and Third Amendment Directions dated June 08, 2026 and June 19, 2026, as applicable to various banks, wherein exemption has been provided from maintenance of Cash Reserve Ratio and Statutory Liquidity Ratio on fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilised (including deposits that are renewed upon maturity) between June 08, 2026 and September 30, 2026, and on fresh Non-Resident (External) Rupee (NRE) term deposits of tenor of three years or more mobilised (including deposits that are renewed upon maturity) between June 19, 2026 and September 30, 2026. 3. In this connection, please refer to the Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025 (Updated as on January 19, 2026). It has been decided that the following advances extended in India will be excluded from calculation of Adjusted Net Bank Credit (ANBC): a) advances against the fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilised (including deposits that are renewed upon maturity) by the banks between June 08, 2026 and September 30, 2026, and b) advances against NRE term deposits of three years or more mobilised (including deposits that are renewed upon maturity) by the banks between June 19, 2026 and September 30, 2026. 4. The Amendment Directions modify the Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025 as below: i. Item no. VI in the table at paragraph 6.1 shall be partially modified as below: Advances extended in India against the incremental fresh FCNR (B) / NRE deposits (including deposits that are renewed upon maturity), qualifying for exemption from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements, as per the Reserve Bank’s circulars DBOD.No.Ret.BC.36/12.01.001/2013-14 dated August 14, 2013 read with DBOD.No.Ret.BC.93/12.01.001/2013-14 dated January 31, 2014, DBOD mailbox clarification issued on February 6, 2014 and UBD.BPD.(PCB).CIR.No.5/13.01.000/2013-14 dated August 27, 2013 read with UBD.BPD.(PCB).Cir.No.72/13.01.000/ 2013-14 dated June 11, 2014. Reserve Bank of India (Cash Reserve Ratio and Statutory Liquidity Ratio) Second and Third Amendment Directions dated June 08, 2026 and June 19, 2026, as applicable to various banks. Note: The amount to be excluded from ANBC for computation of priority sector targets shall not exceed the fresh FCNR (B) / NRE deposits eligible for exemption from maintenance of CRR / SLR in terms of the above Amendment Directions. ii. Foot note no.3 shall be deleted: The incremental advances extended out of the resources generated from the eligible incremental FCNR(B)/NRE deposits is calculated as the difference between outstanding advances in India as on March 7, 2014 (June 13, 2014, in case of UCBs) and the Base Date (July 26, 2013). The amount to be excluded from ANBC for computation of priority sector targets will not exceed incremental FCNR (B) / NRE deposits eligible for exemption from maintenance of CRR / SLR in terms of the circulars mentioned above. In case, the difference in the amount outstanding is zero or negative, no amount would be eligible for deduction from ANBC for the purpose of arriving at the priority sector lending targets.
5. The above amendment shall come into force with immediate effect. Yours faithfully, (Nisha Nambiar)
Chief General Manager-in-Charge |