RBI/2008-09/510
DBOD.No.Dir.BC. 139 /13.03.00/2008-2009

June 25, 2009

All Scheduled Commercial Banks
(excluding RRBs)

Dear Sir

Banks’ Exposure to Capital Market –
Loans extended by banks to Mutual Funds and
Issue of Irrevocable Payment Commitments (IPCs)

Please refer to our circular No.DBOD.Dir.BC.119/13.03.00/2008-2009 dated March 30, 2009 in terms of which the transition period allowed to banks to comply with the requirements contained in our circular No.DBOD.Dir.BC.57/ 13.03.00/2007-2008 dated December 14, 2007, was extended up to June 30, 2009. On a review, it has been decided to further extend the transition period up to December 31, 2009.

Yours faithfully

(P Vijaya Bhaskar)
Chief General Manager-in-Charge