Master Circular on Exposure Norms (2009)

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 banks were required to do at the time

• 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• Train credit and compliance teams on the updated master circular to avoid reliance on outdated circulars.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