April 27, 2005

The CEOs of:

Dear Sir

Limited Off-site Supervision of select Financial Institutions – Simplified Information System

Please refer to our Circular letter DBS.FID.No. C-7 / 10.06.00 / 2001-2002 dated October 20, 2001 regarding revision of the prudential return formats for off-site supervision. It has now been decided that the Financial Institutions not accepting public deposits but having asset size of Rs. 500 crore and above would be subjected to limited off-site supervision by RBI. Therefore, with effect from the period ended March 31, 2005, the existing system of off-site supervision would stand replaced by a simplified information system known as the 'Quarterly return on important financial parameters in respect of select Financial Institutions'. The format of the new return is given in the Annexure to this letter.

2. The return, duly certified by the CEO and the Statutory Auditor of the FI may be submitted to RBI within one month from the end of the quarter to which it relates. As such, the first return in respect of the period ended March 31, 2005 should reach RBI by April 30, 2005.

3. With the putting in place of the limited off-site supervision system, the Annual Financial Inspection will no longer be undertaken by RBI.

4. Please acknowledge receipt.