What changed
This master circular replaces the previous version dated July 1, 2008, by incorporating all instructions issued up to June 30, 2009. It consolidates and updates the existing guidelines on credit exposure limits for individual/group borrowers, sectoral exposure, and capital market exposure. No new policy changes were introduced; it is purely a compilation exercise.
What it means for you
Banks must refer to this updated master circular as the single source for all exposure norms, ensuring compliance with the latest consolidated instructions. The circular does not alter existing limits or requirements but provides clarity and ease of reference. Lenders should review their internal policies to align with this consolidated framework.
What you must do
- Replace the previous master circular (2008) with this updated version for all exposure norm references.
- Ensure internal credit policies and risk management frameworks reflect the consolidated guidelines as of June 30, 2009.
- Train credit and compliance teams on the updated master circular to avoid reliance on outdated circulars.
- Verify that exposure limits for individual/group borrowers, sectors, and capital market are within prescribed ceilings.
Who it affects
All scheduled commercial banks (excluding Regional Rural Banks), Credit risk management teams, Compliance departments, Board-level risk committees
Does this master circular introduce any new exposure limits?
No, it only consolidates and updates existing instructions issued up to June 30, 2009. No new limits or rules were added.
Which banks are covered under this circular?
All scheduled commercial banks except Regional Rural Banks (RRBs) are covered.
What should we do with the previous master circular from 2008?
It is superseded by this circular. Banks should discard the old version and use this updated one for all compliance and reference purposes.