RBI extends relaxations on loans to mutual funds against CDs
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/243 · issued 20 Oct 2008 · ~1 min read
Quick answerRBI has extended the temporary relaxations on loans to mutual funds against and buy-back of Certificates of Deposits, originally announced via circular dated October 14, 2008, until further advice. Banks can continue these operations without the earlier 15-day limit.
What changed
The relaxations on loans to mutual funds against and buy-back of Certificates of Deposits, initially allowed for 15 days from October 14, 2008, have been extended indefinitely. The earlier circular's provisions remain in force until RBI issues further advice.
What it means for you
Banks can continue lending to mutual funds against CDs and facilitating CD buy-backs without the previous time limit, supporting liquidity in the mutual fund sector. This extension provides operational certainty for banks dealing with mutual fund clients, especially during the 2008 financial stress period.
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
Continue to apply the relaxations from the October 14, 2008 circular until further RBI advice
Monitor for any future RBI circulars that may modify or withdraw these relaxations
Ensure internal policies align with the extended validity of these relaxations
Who it affects
All commercial banks (excluding LABs and RRBs), All-India Term Lending and Refinancing Institutions
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 11:52 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What specific relaxations were extended?
The relaxations relate to loans to mutual funds against Certificates of Deposits and the buy-back of CDs, as detailed in the October 14, 2008 circular.
How long will these relaxations remain in force?
They will continue until further advice from RBI, meaning no fixed end date has been set.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2061: DBOD.No.BP.BC.65/21.06.001/2008-09 — "Loans to Mutual Funds against and Buy-back of Certificates of Deposits (CDs)" dated October 20, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/243
DBOD.No.BP.BC. 65 /21.06.001/2008-09
October 20, 2008
All Commercial Banks (excluding LABs and RRBs)
and All-India Term Lending and Refinancing Institutions
Dear Sirs,
Loans to Mutual Funds against and buy–back of Certificates of Deposits (CDs)
Please refer to our circular DBOD.No.BP.BC.59/21.03.009/2008-09 dated October 14, 2008 , in terms of which certain relaxations on the captioned subject were announced, for a period of 15 days from the date of that circular.
2. On a review, it has been decided that the relaxations allowed vide our circular dated October 14, 2008, would continue to be in force until further advice.
Yours faithfully,
(Prashant Saran)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/243 · issued 20 Oct 2008. 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=4571&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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