What changed
RBI issued a master circular consolidating all prior instructions on resource raising for all-India term lending and refinancing institutions, effective July 1, 2009. This replaced the previous master circular from July 1, 2008, and includes updates up to June 30, 2009. The circular brings together norms for term deposits, term money, CDs, CPs, ICDs, and bonds under a single framework.
What it means for you
For Exim Bank, NABARD, NHB, and SIDBI, this master circular simplifies compliance by providing one reference document for all resource raising norms. It ensures a level playing field by subjecting both statutory bodies and limited companies to uniform RBI regulations. Banks dealing with these FIs can expect consistent documentation and reporting requirements for instruments like bonds and CPs.
What you must do
- Review the consolidated master circular to understand updated umbrella limits for term deposits, term money, CDs, CPs, and ICDs.
- Ensure your institution's resource raising activities comply with the norms for reporting and documentation as per Annexes 1-4.
- Coordinate with your IPA for CP issuance to ensure the IPA submits required information to RBI as per the proforma in Annex 1.
- Update internal policies to reflect the consolidated guidelines and train relevant staff on the changes.
Who it affects
Exim Bank, NABARD, NHB, SIDBI, Issuing and Paying Agents (IPAs)
What is the purpose of this master circular?
It consolidates all RBI instructions on resource raising for specified financial institutions to help them meet short-term and long-term funding needs, while ensuring a level playing field through uniform norms.
Which institutions are covered under this circular?
The circular applies to all-India term lending and refinancing institutions: Exim Bank, NABARD, NHB, and SIDBI.
Does this circular change the bond issuance process for FIs?
It consolidates existing norms; FIs must still approach RBI's Standing Committee for bond issues, providing details on amount, manner, and purpose of the issue.