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RBI Extends Transition Period for MF Loans and IPCs to March 2009

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/323 · issued 12 Dec 2008 · ~1 min read
Quick answerRBI has extended the transition period for banks to comply with capital market exposure norms on loans to mutual funds and irrevocable payment commitments from December 13, 2008 to March 31, 2009, giving banks more time to align with earlier guidelines.

What changed

The transition period for banks to comply with the requirements on loans to mutual funds and issue of irrevocable payment commitments (IPCs) was extended from December 13, 2008 to March 31, 2009. This follows a previous extension granted in September 2008.

What it means for you

Banks get additional time to adjust their capital market exposure practices without facing immediate non-compliance. This extension provides operational relief, especially for banks with significant mutual fund lending or IPC issuance, allowing smoother transition to the stricter norms.

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 scheduled commercial banks (excluding RRBs), Banks with mutual fund lending portfolios, Banks issuing irrevocable payment commitments

❓ Common questions

Regulatory timeline

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

What is the new deadline for compliance with the capital market exposure norms?

The transition period has been extended to March 31, 2009, from the earlier deadline of December 13, 2008.

Which circulars are being referenced in this extension?

This extension relates to the requirements in RBI circular DBOD.Dir.BC.57/13.03.00/2007-2008 dated December 14, 2007, and the previous extension was given in circular DBOD.Dir.BC.41/13.03.00/2008-2009 dated September 10, 2008.

Does this extension apply to Regional Rural Banks?

No, the circular is addressed to all scheduled commercial banks excluding RRBs.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #2008: DBOD.No.Dir.BC.98/13.03.00/2008-2009 — "Banks' Exposure to Capital Market - Loans Extended by Banks to Mutual Funds and Issue of Irrevocable Payment Commitmen”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/323 DBOD.No.Dir.BC.98/13.03.00/2008-2009 December 12, 2008 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.41/13.03.00/2008-2009 dated September 10, 2008 , in terms of which the transition period allowed to banks to comply with the requirements contained in our  circular No.DBOD.Dir.BC.57/ 13.03.00/2007-2008 dated December 14, 2007 , was extended up to December 13, 2008. On a review, it has been decided to extend the transition period up to March 31, 2009. Yours faithfully ( P Vijaya Bhaskar ) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/323 · issued 12 Dec 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4710&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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