RBI has discontinued the requirement for maintaining Investment Fluctuation Reserve (IFR) for commercial banks with immediate effect. The circular directs banks to transfer the IFR balance existing as of 17th May 2026, ‘below the line’ to Statutory Reserve, General Reserve, or the Balance of Profit & Loss Account. For foreign banks operating in India through branch mode, the IFR balance must be transferred to statutory reserves maintained in Indian books or to non-repatriable retained surplus.