No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/337 · issued 04 Mar 2010 · ~1 min read
Quick answerRBI raised provisioning for CRE standard assets to 1% for RRBs, effective from the date of the circular (March 4, 2010). Agriculture and SME loans stay at 0.25%, all other loans and advances at 0.40%. This builds a buffer against potential NPAs in the CRE sector.
What changed
RBI increased the provisioning requirement for standard assets in the Commercial Real Estate (CRE) sector from 0.40% to 1.00% for Regional Rural Banks. The provisioning for direct agriculture and SME advances remains unchanged at 0.25%, while all other standard assets now require 0.40% provisioning.
What it means for you
RRBs must set aside more capital for CRE loans, reducing immediate profitability but strengthening balance sheets against future defaults. The move signals RBI's concern over CRE credit growth and restructured advances, urging banks to proactively manage risk. Other loan categories see a slight increase from earlier norms, except agriculture and SME.
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
Update internal provisioning policies to reflect 1% for CRE standard assets and 0.40% for other non-agri/SME loans.
Review CRE loan portfolio to identify any restructured advances and assess NPA risk.
Communicate revised provisioning rates to credit and risk management teams for accurate financial reporting.
Ensure compliance with the circular by acknowledging receipt to the respective RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), Banks with CRE loan exposure, Risk management and finance departments of RRBs
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 07:20 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Why did RBI increase CRE provisioning to 1%?
To build a cushion against likely NPAs, given the large increase in CRE credit and extent of restructured advances in that sector.
Does this change affect agriculture and SME loans?
No, direct advances to agriculture and SME sectors remain at 0.25% provisioning.
What is the provisioning rate for other standard assets?
All other loans and advances not covered under agriculture, SME, or CRE now require 0.40% provisioning.
📜 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 #1743: RPCD.RRB.No.BC.61/03.05.34/2009-10 — "Provisioning Requirement for Standard Assets" dated March 4, 2010”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/337
RPCD.RRB.No.BC. 61/ 03.05.34/2009-10
March 4, 2010
All Regional Rural Banks
Dear Sir,
Provisioning Requirement for Standard Assets
Please refer to paragraph 2 of our circular RPCD.RRB.No.BC.97/03.05.34/2000-01 dated June 11, 2001 regarding provisioning requirements for ‘standard assets’.
2. In this connection, a reference is invited to paragraph 158 of the Second Quarter Review of Monetary Policy for the year 2009-10 announced on October 27, 2009 ( copy enclosed ). It was proposed to increase the provisioning requirement for advances to the Commercial Real Estate (CRE) sector classified as ‘standard assets’ to 1.00 per cent with a view to building cushion against likely non-performing assets (NPAs). Accordingly, it has been decided to increase the provisioning requirement for advances to the CRE Sector classified as ‘standard asset’ to 1%. As regards other standard assets, it has been decided that while the provisioning requirements for direct advances to agriculture and SME sectors would remain unchanged at 0.25%, the same for all other loans and advances would be 0.40%.
3. The standard asset provisioning requirements for all categories, after the above changes, are summarised below.
Sr.No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/337 · issued 04 Mar 2010. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=5523&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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