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Inter-Bank Participations

RBI/2009-10/113
RPCD.CO.RRB.BC.No.13 /03.05.33/2009-10

August 4, 2009

The Chairman
All Regional Rural Banks

Dear Sir,

Inter-Bank Participations

In terms of our Circular DBOD No.BP.BC.57/62-88 dated December 31, 1988 (copy enclosed) a scheme of Inter-Bank Participat- ion Certificate (IBPC) was introduced for scheduled commercial banks.

2.  It has been decided that henceforth, Regional Rural Banks (RRBs) can also issue IBPC of a tenor of 180 days on risk sharing basis to scheduled commercial banks against their priority sector advances in excess of 60% of their outstanding advances.

3.  All other features of the scheme of IBPCs will remain unchanged.

Yours faithfully,

(R.C.Sarangi)
Chief General Manager

Encl : as above

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