RBI Extends Transition Period for Capital Market Exposure Norms
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/149 · issued 30 Jul 2010 · ~1 min read
Quick answerRBI has extended the transition period for banks to comply with capital market exposure norms, including loans to mutual funds and IPCs, from July 31, 2010, to September 30, 2010.
What changed
The transition period for banks to meet requirements on capital market exposure, as per earlier circulars, was extended from July 31, 2010, to September 30, 2010. This extension applies to loans extended to mutual funds and the issuance of Irrevocable Payment Commitments (IPCs).
What it means for you
Banks get additional time to align their lending practices with RBI's capital market exposure guidelines, reducing immediate compliance pressure. This extension helps banks manage their exposure to mutual funds and IPCs without rushing adjustments, but they must finalize compliance by the new deadline.
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
Review your bank's current capital market exposure, including loans to mutual funds and IPCs, against RBI guidelines.
Ensure full compliance with the requirements by September 30, 2010, using the extended transition period.
Update internal policies and reporting systems to reflect the new deadline and avoid penalties.
Who it affects
All scheduled commercial banks (excluding RRBs), Bank treasury and risk management departments, Mutual funds and capital market borrowers
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the new deadline for compliance?
The transition period has been extended to September 30, 2010, from the earlier deadline of July 31, 2010.
Which circulars are being referenced?
This extension relates to requirements from circular DBOD.Dir.BC.57/13.03.00/2007-08 dated December 14, 2007, and the previous extension in circular DBOD.Dir.BC.116/13.03.00/2009-10 dated June 30, 2010.
Does this apply to Regional Rural Banks?
No, the circular explicitly excludes RRBs and applies only to all scheduled commercial banks.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “transition period allowed to banks to comply with the requirements contained in our circular”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1622: DBOD.Dir.BC.32/13.03.00/2010-11 — "Banks' Exposure to Capital Market - Loans extended by Banks to Mutual Funds and Issue of Irrevocable Payment Commitments (I”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/149
DBOD.Dir.BC. 32 /13.03.00/2010-11
July 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.116/13.03.00/2009-10 dated June 30, 2010 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 July 31, 2010. On a review, it has been decided to further extend the transition period to September 30, 2010.
Yours faithfully,
(P. R. Ravi Mohan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/149 · issued 30 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=5915&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.