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RBI: No need to maintain CRR, SLR on NRE deposits

India Infoline News Service | Mumbai | August 14, 2013 20:20 IST

At present, banks are required to include all Foreign Currency Non-Resident Bank [FCNR (B)].

RBI said "At present, 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) and for maintenance of CRR and SLR."

"Banks are advised that with effect from fortnight beginning August 24, 2013, incremental FCNR (B) deposits as also NRE deposits with reference base date of July 26, 2013, and having maturity of three years and above, mobilised by banks will be exempt from maintenance of CRR and SLR.

To amplify, if a bank had a total FCNR (B) deposit base of say USD 100 as on the base date, and mobilises an incremental deposit of say USD 20, that portion of USD 20 which has a maturity of 3 years and above will not be part of NDTL and will qualify for CRR and SLR exemption. The same principle will apply for calculation of NRE deposits for exemption from maintenance of CRR/SLR requirements. However, any transfer from Non-Resident (Ordinary) (NRO) accounts to NRE accounts shall not qualify for such exemptions, RBI stated.

Further, advances extended in India against the incremental FCNR (B) / NRE deposits qualifying for exemption from CRR/SLR requirements as above, will also be excluded from Adjusted Net Bank Credit for computation of priority sector lending targets.









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113110815862
RBI: No need to maintain CRR, SLR on NRE deposits
RBI: No need to maintain CRR, SLR on NRE deposits
At present, banks are required to include all Foreign Currency Non-Resident Bank [FCNR (B)].
http://www.indiainfoline.com/article/news-top-story/rbi-no-need-to-maintain-crr-slr-on-nre-deposits-113110815862_1.html
August 14, 2013 20:20 IST
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