Home › Circulars › RBI/2009-10/391

RRBs get one more year of SLR MTM exemption

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2009-10/391 · issued 09 Apr 2010 · ~1 min read

Quick answerRBI extended the exemption for RRBs from mark-to-market norms on SLR securities for FY 2009-10, allowing them to classify the entire SLR portfolio under Held to Maturity and value at book cost.

What changed

The exemption from mark-to-market norms for RRBs' SLR investments, previously valid up to FY 2008-09, has been extended by one more year to FY 2009-10. RRBs can now classify their entire SLR securities portfolio under Held to Maturity for this period, valuing at book value and amortising premium over the remaining life.

What it means for you

This move shields RRBs from interest rate volatility on their SLR holdings for another year, reducing pressure on their profit and loss statements. It provides operational flexibility and stability, especially for smaller banks with limited treasury expertise, but may delay adoption of market discipline.

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 2009-10 as permitted.
Value these securities at book value and amortise any premium over the remaining life of each security.
Acknowledge receipt of this circular to your respective RBI Regional Office.
Review your investment policy to align with this temporary classification change.

Who it affects

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

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 06:55 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

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

Does this circular apply to all SLR securities held by RRBs?

Yes, the exemption covers the entire investment portfolio of SLR securities, allowing them to be classified under Held to Maturity for FY 2009-10.

What valuation method should RRBs use under this exemption?

RRBs must value these securities at book value and amortise any premium paid over the remaining life of the security.

Is this a permanent change or just for one year?

This is a one-year extension for FY 2009-10 only, following a similar exemption granted up to FY 2008-09.

📜 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 #1729: RPCD.RRB.BC.No.68/03.05.34/2009-10 — "Investment in SLR Securities by Regional Rural Banks (RRBs)" dated April 9, 2010”

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

RBI/2009-10/391
 RPCD.RRB.BC.No.68 /03.05.34/2009-10 
 April 9, 2010
 The Chairman
 All Regional Rural Banks/Sponsor Banks 
 Dear Sir,
 Investment in SLR Securities by 
 Regional Rural Banks (RRBs) 
 Please refer to our circular RPCD.RRB.BC.No.94/03.05.34/2008-09 dated March 26, 2009 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 2008-09 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 2009-10. Accordingly, RRBs will have the freedom to classify their entire investment portfolio of SLR securities under 'Held to Maturity' for the financial year 2009-10 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. Yours faithfully,
 (A.K.Pandey) 
 General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/391 · issued 09 Apr 2010. 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=5581&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.