Home › Circulars › RBI/2006-2007/383

RRBs Get One-Year Extension on MTM Exemption for SLR Securities

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2006-2007/383 · issued 08 May 2007 · ~1 min read

Quick answerRBI extends RRBs' exemption from mark-to-market norms for SLR securities by one year to FY 2007-08. RRBs can classify entire SLR portfolio under Held to Maturity, valuing at book value with premium amortisation. Submit book and market values by May 31, 2007.

What changed

The exemption from mark-to-market norms for RRBs' SLR investments, previously valid up to FY 2006-07, has been extended for FY 2007-08. RRBs may now classify all SLR securities under Held to Maturity for this period, using book value and amortising any premium over the remaining life.

What it means for you

This extension shields RRBs from market volatility in their SLR portfolios for another year, reducing pressure on capital adequacy. It allows simpler valuation but delays full adoption of mark-to-market discipline. RBI also seeks data on book and market values to assess future transition impact.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Classify entire SLR investment portfolio under Held to Maturity for FY 2007-08, valuing at book value with premium amortisation.
Report book value and market value of SLR investments as on March 31, 2007 to RBI by May 31, 2007.
Acknowledge receipt of this circular to your respective Regional Office.

Who it affects

All Regional Rural Banks (RRBs), Sponsor Banks of RRBs

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 16:56 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 05 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the key change for RRBs regarding SLR securities valuation?

RRBs are exempt from mark-to-market norms for SLR securities for FY 2007-08, allowing them to classify the entire portfolio under Held to Maturity and value at book value with premium amortisation.

What data must RRBs submit to RBI and by when?

RRBs must provide the book value and market value of their SLR investments as on March 31, 2007, to RBI by May 31, 2007.

Why is RBI collecting this data from RRBs?

RBI needs this data to analyse the impact of moving towards full mark-to-market norms for RRBs in the future.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #2439: RPCD.RRB.BC.No.87/03.05.34/2006-07 — "Valuation of Investment in SLR / Approved Securities by Regional Rural Banks (RRBs)" dated May 8, 2007”

📜 Read the original circular — full text as issued by RBI

RBI/2006-2007/383
 RPCD.RRB.BC.No.87/03.05.34/2006-07
 May 8, 2007
 The Chairmen
 All Regional Rural Banks/Sponsor Banks 
 Dear Sir,
 Valuation of investment in SLR/Approved Securities by
 Regional Rural Banks (RRBs) 
 Please refer to our circular  RPCD.RRB.BC.No.71/03.05.34/2005-06 dated March 31, 2006  on the above subject.
 2. The matter has been reviewed and it has been decided that the exemption granted to RRBs up to the financial year 2006-07 from 'mark to market' norms in respect of their investments in SLR securities be extended by one more year i.e. for the financial year 2007-08. Accordingly, RRBs will have the freedom to classify their entire investment portfolio of SLR securities under 'Held to Maturity' for the financial year 2007-08 with valuation on book value basis and amortisation of premium, if any, over the remaining life of securities.
 3. To enable us to analyse the impact of moving towards 'mark to market', please let us know latest by May 31, 2007, the book value and market value of your SLR investments as on March 31, 2007.
 4. Please acknowledge receipt to the respective Regional Office.
 Yours faithfully,
 (C.S. Murthy)
 Chief General Manager-in-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/383 · issued 08 May 2007. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3498&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.