Source: Reserve Bank of India · RBI/2008-2009/80 · issued 01 Jul 2008 · ~1 min read
Quick answerRBI consolidated all credit and capital market exposure norms for scheduled commercial banks (excluding RRBs) into a single master circular, updating instructions through June 30, 2008. Banks must follow revised ceilings for individual/group borrowers, sector limits, and capital market exposure rules.
What changed
RBI replaced the July 2007 master circular on exposure norms with an updated version incorporating all instructions issued up to June 30, 2008. The circular consolidates guidelines on credit exposure limits for individual/group borrowers, sector-specific exposures, and capital market exposure, including definitions, exemptions, and risk management requirements.
What it means for you
Banks must align their lending and investment practices with the updated exposure limits and reporting standards. The circular reinforces prudential norms to manage concentration risk and capital market volatility, impacting loan sanctioning, portfolio diversification, and compliance monitoring.
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
Review and update internal credit policies to reflect the revised exposure ceilings for individual and group borrowers.
Ensure capital market exposure calculations include all components listed in the circular and adhere to prescribed limits.
Strengthen risk management and internal control systems for monitoring sectoral and capital market exposures.
Train credit and compliance teams on the updated definitions, exemptions, and reporting requirements.
Verify that all exposures to leasing, hire purchase, factoring, and overseas subsidiaries comply with the circular.
Who it affects
All scheduled commercial banks (excluding RRBs), Credit risk and compliance departments, Loan sanctioning and portfolio management teams, Investment and treasury divisions handling capital market exposure
RBI’s words: “Please refer to the Master Circular DBOD No. Dir. BC. 19/13.03.00/2008-09 dated July 1, 2008 consolidating the instructions / guidelines issued to banks till that date relating to Exposure Norms.”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2008-2009/80
DBOD No. Dir. BC. 19/13.03.00/ 2008- 09
July 1, 2008
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir
Master Circular – Exposure Norms
Please refer to the Master Circular DBOD No. Dir. BC. 11/13.03.00/2006-07 dated July 2, 2007 consolidating the instructions / guidelines issued to banks till that date relating to Exposure Norms. The Master Circular has been suitably updated by incorporating the instructions issued up to June 30, 2008 and has also been placed on the RBI website ( http://www.rbi.org.in ). A copy of the Master Circular is enclosed.
Yours faithfully
(P. Vijaya Bhaskar)
Chief General Manager
CONTENTS
Para No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-2009/80 · issued 01 Jul 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=4347&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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