Source: Reserve Bank of India · RBI/2010-11/59 · issued FY 2010-11 · ~1 min read
Quick answerRBI issued a consolidated master circular on prudential norms for classification, valuation, and operation of investment portfolios by all-India term lending and refinancing institutions (Exim Bank, NABARD, NHB, SIDBI), effective July 1, 2010, updating previous guidelines.
What changed
This master circular consolidates all previous instructions on investment portfolio norms for FIs up to June 30, 2010, replacing the earlier circular dated July 1, 2009. It includes updated guidelines on investment policy, internal controls, classification into three categories (HTM, AFS, HFT), valuation methods, and repo accounting.
What it means for you
FIs must align their investment operations with this consolidated framework, ensuring clear board-approved policies, robust internal controls, and proper classification and valuation of securities. The circular reinforces prudential norms to prevent irregularities in securities transactions, as highlighted by the Janakiraman Committee.
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 and update your FI's investment policy to comply with the consolidated master circular.
Ensure proper classification of investments into Held to Maturity, Available for Sale, and Held for Trading categories.
Strengthen internal control systems, including audit, review, and reporting of investment transactions.
Adopt the prescribed valuation norms for all securities, including unquoted ones.
Implement repo accounting as per the guidelines, including coupon and mark-to-market treatment.
Who it affects
Exim Bank, NABARD, NHB, SIDBI, All-India term lending and refinancing institutions
RBI’s words: “Please refer to Master Circular DBOD.No.FID.FIC.3/01.02.00/2010-11 dated July 01, 2010”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1663: DBOD.No.FID.FIC.3/01.02.00/2010-11 — "Master Circular - Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by FIs" dated Jul”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/59
DBOD.No.FID.FIC.3/01.02.00/2010-11
01 July, 2010
10 Aashadha 1932 (Saka)
The CEOs of the All-India Term Lending and Refinancing Institutions
(Exim Bank, NABARD, NHB and SIDBI)
Dear Sir,
Master Circular – Prudential norms for classification,
valuation and operation of investment portfolio by FIs
Please refer to Master Circular DBOD.No.FID.FIC.3/ 01.02.00 / 2009-10 dated July 01, 2009 on the captioned subject. The enclosed Master Circular consolidates and updates all the instructions/guidelines on the subject up to June 30, 2010. The Master Circular has also been placed on the web-site of RBI ( http://www.rbi.org.in ).
2. It may be noted that the instructions contained in circulars listed in the Annex V have been consolidated in this master circular.
Yours faithfully,
(Vinay Baijal)
Chief General Manager
Encls : As above Master Circular – Prudential Norms For Classification,
Valuation And Operation Of Investment Portfolio By FIs
Purpose
To provide a consolidated set of guidelines on Classification, Valuation and Operation of Investment Portfolio to all-India term-lending and refinancing institutions.
Previous instructions
The list of circulars containing previous instructions on the above subject is given in Annex V.
Application
To all the all-India Financial Institutions viz. Exim Bank, NABARD, NHB and SIDBI.
Structure
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/59 · issued FY 2010-11. 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=5772&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.
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