Source: Reserve Bank of India · RBI/2010-11/74 · issued 01 Jul 2010 · ~1 min read
Quick answerRBI updated its master circular on prudential norms for advances, consolidating all instructions issued up to June 30, 2010. This covers NPA classification, income recognition, provisioning, and restructuring guidelines for commercial banks (excluding RRBs).
What changed
The previous master circular dated July 1, 2009 was updated to include all instructions issued up to June 30, 2010. The revised circular consolidates these instructions into a single document, replacing earlier circulars listed in Annex 9.
What it means for you
Banks must now follow the updated master circular for classifying assets as NPA, recognizing income, and making provisions. The circular also includes guidelines on sale/purchase of NPAs, restructuring of advances, and special regulatory treatment for certain restructured assets.
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 internal policies to align with the revised master circular.
Ensure all staff handling credit and NPA management are trained on the updated norms.
Verify that asset classification and provisioning practices comply with the new guidelines.
Maintain documentation for any restructuring or sale of NPAs as per the circular's requirements.
Who it affects
All commercial banks (excluding RRBs), Credit risk and NPA management teams, Loan officers and relationship managers, Compliance and audit departments
RBI’s words: “Please refer to the Master Circular No. DBOD.No.BP.BC. 21/21.04.048/2010-11 dated July 1, 2010 consolidating instructions”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1650: DBOD.No.BP.BC.21/21.04.048/2010-11 — "Master Circular - Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances" ”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/74
DBOD.No.BP.BC.21 /21.04.048/2010-11
July 1, 2010
All Commercial Banks (excluding RRBs)
Dear Sir
Master Circular - Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances
Please refer to the Master Circular No. DBOD.No.BP.BC. 17/21.04.048/2009-10 dated July 1, 2009 consolidating instructions / guidelines issued to banks till June 30, 2009 on matters relating to prudential norms on income recognition, asset classification and provisioning pertaining to advances.
2. The Master Circular has now been suitably updated by incorporating instructions issued up to June 30, 2010 and is attached. It has also been placed on the RBI web-site ( http://www.rbi.org.in ). We advise that this revised Master Circular consolidates the instructions contained in the circulars listed in the Annex 9.
Yours faithfully
(B. Mahapatra)
Chief General Manager-in- Charge
Encls: As above
TABLE OF CONTENTS
Para No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/74 · issued 01 Jul 2010. 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=5781&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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