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Corporate Laws Central Ministry of Finance Banking (Regulation) Act, 1949

Exemption to Foreign Currency Non-Resident (Bank)/Non-Resident (External) Rupee (NRE) Term deposits from maintenance of Cash Reserve Ratio/Statutory Liquidity Ratio

06-Jul-2022 | RBI/2022-2023/83 DOR.RET.REC.54/12.01.001/2022-23

RBI has issued notification regarding exemption from maintenance of Cash Reserve Ratio/Statutory Liquidity Ratio for Foreign Currency Non-Resident (Bank)/Non-Resident (External) Rupee (NRE) Term deposits. This shall come into force on July 30, 2022 Banks are required to include all Foreign Currency Non-Resident (Bank) [FCNR (B)] and Non-Resident (External) Rupee (NRE) deposit liabilities for computation of Net Demand and Time Liabilities (NDTL) for maintenance of CRR and SLR The following has been stated namely- 1. From the reporting fortnight beginning July 30, 2022, incremental FCNR (B) deposits as also NRE Term deposits with reference to base date of July 1, 2022, mobilised by banks will be exempt from maintenance of CRR and SLR. 2. The same principle will apply for calculation of NRE Term deposits for exemption from maintenance of CRR/SLR requirements. 3. Any transfer from Non-Resident (Ordinary)(NRO) accounts to NRE accounts will not qualify for such exemptions. The above exemptions are valid for deposits raised till November 04, 2022. The exemption on reserves maintenance will be available for the original deposit amounts till such time the deposits are held in the bank books.

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