RBI/2010-11/149
DBOD.Dir.BC. 32 /13.03.00/2010-11

July 30, 2010

All Scheduled Commercial Banks
(excluding RRBs)

Dear Sir / Madam

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.116/13.03.00/2009-10 dated June 30, 2010 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 July 31, 2010. On a review, it has been decided to further extend the transition period to September 30, 2010. 

Yours faithfully,

(P. R. Ravi Mohan)
Chief General Manager