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Loans extended by banks to MFs and Issue of IPCs

RBI/2009-10/272
DBOD.Dir.BC. 66 /13.03.00/2009-10

December 23, 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.139/13.03.00/2009-10 dated June 25, 2009 in terms of which the transition period allowed to banks to comply with the requirements contained in our circular No. DBOD.Dir.BC.57/13.03.00/2007-08 dated December 14, 2007, was extended up to December 31, 2009.  On a review, it has been decided to further extend the transition period up to June 30, 2010.

Yours faithfully

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

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