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RRBs get one-year MTM exemption extension for SLR securities

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2008-09/420 · issued 26 Mar 2009 · ~2 min read

Quick answerRBI extended the mark-to-market exemption for RRBs' SLR securities by one more year to FY 2008-09, allowing them to classify the entire SLR portfolio under Held to Maturity and value it at book value with premium amortisation.

What changed

The exemption from mark-to-market norms for RRBs' investments in SLR securities, which was previously granted up to FY 2007-08, has been extended for FY 2008-09. RRBs can now classify their entire SLR portfolio under Held to Maturity for this financial year, valuing it at book value and amortising any premium over the remaining life of the securities.

What it means for you

This extension provides RRBs with continued relief from market volatility in their SLR portfolios, allowing them to avoid marking down securities to market prices. It simplifies valuation and reduces pressure on their profit and loss statements, especially in a rising interest rate environment. Banks can maintain stable book values for these securities, aiding capital planning.

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 your entire SLR securities portfolio under Held to Maturity for FY 2008-09.
Value these securities at book value and amortise any premium over their remaining life.
Acknowledge receipt of this circular to your respective RBI Regional Office.
Review your investment classification policies to align with this exemption for the current financial year.

Who it affects

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

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 10:47 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Status change: withdrawn 05 Aug 2026, 04:00 IST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 does this exemption mean for RRBs' financial reporting?

RRBs can avoid marking their SLR securities to market for FY 2008-09, valuing them at book value instead. This prevents potential losses from market price fluctuations from hitting their profit and loss account.

Can RRBs still trade SLR securities under this exemption?

The circular allows classification of the entire SLR portfolio under Held to Maturity, which typically restricts active trading. However, the specific trading flexibility is not addressed in this notification; banks should follow existing RBI guidelines on HTM classification.

Is this exemption applicable for future financial years beyond 2008-09?

No, the circular explicitly extends the exemption only for FY 2008-09. Future years will require separate RBI review and notification.

📜 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 #1963: RPCD.RRB.BC.No.94/03.05.34/2008-09 — "Valuation of Investment in SLR / Approved Securities by Regional Rural Banks (RRBs)" dated March 26, 2009”

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

Please refer to our circular RPCD.RRB.BC.No.87/03.05.34/2006-07 dated May 8, 2007 on the above subject.
 2. On a review of the issue it has been decided that the exemption granted to RRBs up to the financial year 2007-08 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 2008-09. Accordingly, RRBs will have the freedom to classify their entire investment portfolio of SLR securities under 'Held to Maturity' for the financial year 2008-09 with valuation on book value basis and amortisation of premium, if any, over the remaining life of securities.

 3. Please acknowledge receipt to the respective Regional Office.

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/420 · issued 26 Mar 2009. 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=4906&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.