Capital Market Exposure: IPC Transition Extended to July 31, 2010
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/514 · issued 30 Jun 2010 · ~1 min read
Quick answerRBI extended the transition period for banks to comply with capital market exposure norms for loans to mutual funds and IPCs by one month, from June 30, 2010 to July 31, 2010. This is a deadline extension, not a rule change.
What changed
The transition period for banks to fully comply with the December 2007 circular on capital market exposure, specifically loans to mutual funds and IPCs, was extended by one month. The new deadline is July 31, 2010, instead of June 30, 2010.
What it means for you
Banks get an extra month to align their practices with the 2007 norms on capital market exposure. This extension provides temporary relief but underscores RBI's expectation of full compliance by the new date. No new requirements were introduced.
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
Ensure all loans to mutual funds and IPC issuance comply with the December 2007 circular by July 31, 2010.
Review current exposure to capital market through MFs and IPCs and adjust as needed.
Update internal compliance timelines to reflect the extended deadline.
Prepare for RBI scrutiny post-July 31, 2010, as no further extensions are indicated.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Treasury and credit departments handling capital market exposure, Compliance teams monitoring regulatory deadlines
RBI’s words: “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 July 31, 2010”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1697: DBOD.Dir.BC.116/13.03.00/2009-10 — "Banks' Exposure to Capital Market - Loans extended by Banks to Mutual Funds and Issue of Irrevocable Payment Commitments (”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/514
DBOD.Dir.BC.116 /13.03.00/2009-10
June 30, 2010
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir / Madam
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.66/13.03.00/2009-10 dated December 23, 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 June 30, 2010. On a review, it has been decided to further extend the transition period by one month up to July 31, 2010.
Yours faithfully
(A.K.Khound)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/514 · issued 30 Jun 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=5752&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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