RBI/2009-10/115
DBOD No.BP.BC. 28 /21.04.141/2009-10

August 4, 2009

The Chairman and Managing Directors /
Chief Executive Officers of
All Scheduled Commercial Banks
(Excluding RRBs & LABs)

Dear Sir,

Inter-Bank Participations - Scheduled Commercial Banks

Please refer to our Circular DBOD No.BP.BC.57/62-88 dated December 31, 1988 on the captioned subject.

2. It has been decided that henceforth, Regional Rural Banks (RRBs) can also issue Inter-Bank Participation Certificates (IBPCs) 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,

(B. Mahapatra)
Chief General Manager