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Master Circular on Housing Finance – July 2009

No longer current — replaced by rbi-2013-14-17

Source: Reserve Bank of India · RBI/2009-10/75 · issued 01 Jul 2009 · ~1 min read

Quick answerRBI consolidated all housing finance instructions into a single Master Circular effective July 1, 2009, covering direct/indirect loans, priority sector, risk weights, and MBS investments. This replaces the 2008 circular and applies to all scheduled commercial banks except RRBs.

What changed

RBI updated its 2008 Master Circular on housing finance to include instructions and clarifications issued up to June 30, 2009. The new circular consolidates all previous circulars listed in the appendix into one unified document.

What it means for you

Banks now have a single reference point for housing finance rules, reducing compliance ambiguity. The circular reinforces RBI's focus on orderly growth of housing loan portfolios and alignment with the National Housing Policy.

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

Replace the 2008 Master Circular with this updated version for all housing finance operations.
Ensure housing loan policies comply with the consolidated instructions on direct/indirect finance, priority sector, and risk weights.
Review exposure limits and risk weight calculations for housing loans and real estate sector as per the circular.
Update internal training materials and loan processing guidelines to reflect the latest RBI framework.

Who it affects

All scheduled commercial banks (excluding RRBs), Housing finance departments, Priority sector lending teams, Risk management and compliance teams

❓ Common questions

Regulatory timeline

Stated effective date effective July 1, 2009
Decoded by BankPulse 2026-06-19 09:27 IST
Superseded by — rbi-2013-14-17
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Status change: withdrawn 03 Aug 2026, 04:00 IST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 Master Circular apply to Regional Rural Banks?

No, the circular explicitly excludes Regional Rural Banks (RRBs) from its scope.

What is the legal basis for this circular?

It is a statutory directive issued under Sections 21 and 35A of the Banking Regulation Act, 1949.

Does this circular introduce new housing finance rules?

It consolidates existing instructions and clarifications up to June 30, 2009, but does not introduce new rules beyond those already issued.

📜 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 #1866: DBOD.No.DIR.(HSG).BC.08/08.12.01/2009-10 — "Master Circular on Housing Finance" dated July 1, 2009”

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

RBI/2009-10/75
 DBOD. No.DIR. (HSG). BC.08 /08.12.01/2009-10
 July 1, 2009
 09  Aashada , 1931 (Saka)
 All Scheduled Commercial Banks 
 (excluding RRBs) 
 Dear Sir,
 Master Circular on HOUSING FINANCE 
 As you are aware, in order to have all current instructions on a subject at one place, the Reserve Bank of India had issued a Master Circular DBOD.DIR(HSG.)No.10/08.12.01/2008-09 dated July 1, 2008 on the captioned subject, which is now updated up to 30th June 2009. It may be noted that the Master Circular consolidates and updates all the instructions contained in the circulars listed in the Appendix, in so far they relate to providing bank finance to the housing sector. This Master Circular  also incorporates instructions contained in certain clarifications issued by RBI to banks during the course of the year. The Master Circular has also been placed on the RBI web-site ( http://www. rbi.org.in ). A copy of the revised Master Circular is enclosed.

 Yours faithfully,
 (P. Vijaya Bhaskar) 
 Chief General Manager-in-Charge
 Encls : As above 
 Master Circular 
 HOUSING FINANCE 
 CONTENTS 
 Sr.
 No.

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/75 · issued 01 Jul 2009. 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=5135&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.