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RBI Master Circular on Exposure Norms for FIs (2007)

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2006-2007/50 · issued 01 Jul 2006 · ~2 min read
Quick answerRBI updated its 2006 master circular on exposure norms for All-India term-lending and refinancing institutions, consolidating instructions up to June 30, 2007. Key points: exposure ceilings for single/group borrowers, treatment of bridge loans, working capital, and NBFC lending. Refinancing institutions (NABARD, NHB, SIDBI) are exempt for refinance portfolios but advised to set internal limits.

What changed

The 2007 master circular replaces the July 2006 version, incorporating all instructions issued up to June 30, 2007. It consolidates exposure norms for FIs including Exim Bank, IFCI, IIBI, NABARD, NHB, SIDBI, and TFCI. No new substantive changes were introduced; it is an update and consolidation exercise.

What it means for you

Banks and FIs must continue to adhere to the existing exposure ceilings for single and group borrowers as a prudential measure to avoid credit concentration. Refinancing institutions retain exemption for their core refinance operations but are encouraged to set board-approved internal limits. Compliance with reporting and disclosure requirements remains mandatory.

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

Who it affects

All-India term-lending institutions (Exim Bank, IFCI, IIBI, TFCI), Refinancing institutions (NABARD, NHB, SIDBI), Banks and financial institutions dealing with these FIs

❓ Common questions

Regulatory timeline

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

Are refinancing institutions like NABARD and NHB fully exempt from exposure norms?

No, only their refinance portfolio is exempt. For other lending activities, they must follow the exposure norms. RBI also advises them to set board-approved internal limits for refinance portfolios.

What is the effective date of this master circular?

The circular is dated July 2, 2007, and consolidates instructions up to June 30, 2007. It supersedes the previous master circular of July 2006.

Can exposures guaranteed by the Government of India be excluded from borrower limits?

Yes, while computing exposure to a borrower or group, exposures where both principal and interest are fully guaranteed by the Government of India may be excluded.

📜 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 #2404: DBOD.No.FID.FIC.4/01.02.00/2007-08 — "Master Circular - Exposure Norms for Financial Institutions" dated July 2, 2007”
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/50 DBOD. No. FID. FIC.4 /01.02.00/2007-08 02 July, 2007 All-India Term-lending and Refinancing Institutions, (Exim Bank, IFCI Ltd., IIBI Ltd., NABARD, NHB, SIDBI and TFCI Ltd.) Dear Sir, Master Circular - Exposure Norms for Financial Institutions Please refer to the Master Circular DBOD.No.FID.FIC.4 /01.02.00/2006-07 dated July 01, 2006 consolidating instructions/ guidelines issued to FIs up to June 2006 on matters relating to Exposure norms . The Master Circular has been suitably updated by incorporating instructions issued up to June 30, 2007 and has also been placed on the RBI web-site ( http: // www.rbi.org.in ). 2. It may be noted that the instructions contained in circulars listed in Part A, as well as the relevant paragraphs of Part B of the Appendix have been consolidated in this master circular. Yours faithfully, (Vinay Baijal) Chief General Manager CONTENTS 1
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/50 · issued 01 Jul 2006. 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=3660&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.
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