Home › Circulars › RBI/2010-11/473

RRBs get 3-year MTM relief on SLR securities

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/473 · issued 11 Apr 2011 · ~1 min read
Quick answerRBI extended exemption from mark-to-market norms for RRBs' SLR securities by three years (FY 2010-11 to 2012-13). RRBs can classify entire SLR portfolio under Held to Maturity, valuing at book value with premium amortization.

What changed

The exemption from mark-to-market norms for RRBs' SLR securities, which was valid up to FY 2009-10, has been extended for three more financial years: 2010-11, 2011-12, and 2012-13. RRBs can now classify their entire SLR investment portfolio under Held to Maturity for this period, with valuation on book value basis and amortization of premium over the remaining life of securities.

What it means for you

This extension allows RRBs to avoid marking their SLR securities to market, reducing volatility in their profit and loss statements. It provides stability in valuation and helps RRBs manage interest rate risk more comfortably, as they can hold securities to maturity without worrying about short-term price fluctuations.

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

Who it affects

All Regional Rural Banks (RRBs), Sponsor Banks of RRBs

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the key benefit of this exemption for RRBs?

RRBs can avoid mark-to-market valuation on their SLR securities, which reduces income volatility and allows them to hold securities at book value with premium amortization.

For how long is this exemption extended?

The exemption is extended for three financial years: 2010-11, 2011-12, and 2012-13.

Does this apply to all SLR securities held by RRBs?

Yes, RRBs have the freedom to classify their entire investment portfolio of SLR securities under Held to Maturity for the specified period.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1535: RPCD.CO.RRB.BC.No.59/03.05.34/2010-11 — "Investment in SLR Securities by Regional Rural Banks (RRBs)" dated April 11, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/473 RPCD.CO.RRB.BC.No.59 /03.05.34 /2010-11  April 11, 2011 The Chairman All Regional Rural Banks/Sponsor Banks Dear Sir, Investment in SLR Securities by Regional Rural Banks (RRBs) Please refer to our circular RPCD.RRB.BC.No.68/03.05.34/2008-09 dated April 9, 2010 on the captioned subject. 2. On a review of the issue it has been decided that the exemption granted to RRBs up to financial year 2009-10 from ‘mark to market’ norms in respect of their investment in SLR securities be extended by for three years i.e. for the financial years 2010-11, 2011-12 and 2012-13. Accordingly, RRBs will have the freedom to classify their entire investment portfolio of SLR securities under ‘Held to Maturity’ for the financial years 2010-11, 2011-12 and 2012-13 with valuation on book value basis and amortization of premium, if any, over the remaining life of securities. 3. Please acknowledge receipt to the respective Regional Office. Yours faithfully (C.D.Srinivasan) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/473 · issued 11 Apr 2011. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamSenior Management / BoardInternal AuditRisk ManagementData Science / Analytics
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Financial Inclusion & Priority Sector
Small Account Rules for Co-operative Banks – RBI Circular 2011RRB CRR Hiked to 9% from Aug 30, 2008CRR Hiked for RRBs by 50 bps in Two StagesRRBs: PMLA Compliance – CTR, STR, and KYC Software MandateRRB CRR Hiked to 8.25% from May 24, 2008
Browse all departments →

💬 Banker Discussion

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.

Loading comments…
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=6337&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.
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 ↗
—