RBI Extends Transition Period for Bank Loans to MFs and IPCs
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/272 · issued 23 Dec 2009 · ~1 min read
Quick answerRBI has extended the transition period for banks to comply with capital market exposure norms for loans to mutual funds and IPCs from December 31, 2009, to June 30, 2010, giving lenders extra time to adjust.
What changed
The transition period for banks to meet requirements on loans to mutual funds and issuance of Irrevocable Payment Commitments (IPCs) was extended from December 31, 2009, to June 30, 2010. This follows a previous extension granted in June 2009.
What it means for you
Banks get additional six months to align their lending practices with RBI's capital market exposure guidelines, reducing immediate compliance pressure. This extension allows lenders more time to restructure or reduce such exposures without penalty, but they must ensure full compliance by the new deadline.
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 current loan exposures to mutual funds and IPC issuances to ensure they meet RBI's capital market exposure norms.
Prepare a compliance roadmap to achieve full adherence by June 30, 2010.
Monitor any further RBI communications on this matter for potential changes.
Update internal policies and risk management frameworks to reflect the extended timeline.
Who it affects
All scheduled commercial banks (excluding RRBs), Mutual funds receiving bank loans, Entities involved in IPC transactions
RBI’s words: “Please refer to our circular No.DBOD.Dir.BC.66/13.03.00/2009-10 dated December 23, 2009”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1768: DBOD.Dir.BC.66/13.03.00/2009-10 — "Banks' Exposure to Capital Market - Loans extended by Banks to Mutual Funds and Issue of Irrevocable Payment Commitments (I”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/272
DBOD.Dir.BC. 66 /13.03.00/2009-10
December 23, 2009
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.139/13.03.00/2009-10 dated June 25, 2009 in terms of which the transition period allowed to banks to comply with the requirements contained in our circular No. DBOD.Dir.BC.57/13.03.00/2007-08 dated December 14, 2007, was extended up to December 31, 2009. On a review, it has been decided to further extend the transition period up to June 30, 2010 .
Yours faithfully
( P Vijaya Bhaskar )
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/272 · issued 23 Dec 2009. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=5435&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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