Current · Source: Reserve Bank of India · RBI/2010-11/84 · issued 01 Jul 2010 · ~2 min read
Quick answerRBI consolidated all existing CP guidelines into a single master circular issued on July 1, 2010. Eligible issuers include corporates with tangible net worth ≥₹4 crore, PDs, and FIs. Minimum rating is P-2 equivalent, maturity 7 days to 1 year, and denominations of ₹5 lakh or multiples thereof.
The rule, in the simplest words
Only companies with at least ₹4 crore of tangible net worth (what the company owns minus what it owes, not counting things like brand value) can issue Commercial Paper (a short-term IOU).
The Commercial Paper must have a credit rating (a score of how likely the company is to pay back) of at least P-2 (the second-best rating) from an approved agency like CRISIL or ICRA.
The loan (Commercial Paper) must last between 7 days and 1 year, and each piece must be worth ₹5 lakh or a multiple of that amount.
Banks and lenders must check that the company's loan is not a bad loan (standard asset) before letting it issue Commercial Paper.
How it plays out — a real example
A deposits officer in Indore is reviewing a request from a local jewelry company to issue Commercial Paper. She checks the company's balance sheet to confirm its tangible net worth is above ₹4 crore, then verifies the credit rating is at least P-2 from an approved agency. She also ensures the CP will have a maturity of 90 days and a denomination of ₹5 lakh, so she can approve the issuance under the consolidated RBI rules.
What changed
RBI issued a master circular (IDMD.DOD. 14 /11.08.36/2010-11) that consolidates all previous directives on Commercial Paper into one document. This circular updates and replaces earlier circulars listed in the appendix, providing a single reference for CP issuance guidelines.
What it means for you
Banks and lenders now have a unified set of rules for CP issuance, reducing confusion from multiple circulars. The eligibility criteria, rating requirements, and maturity norms remain unchanged, but the consolidation simplifies compliance and reference for market participants.
What you must do
Review the master circular to ensure your CP issuance processes align with the consolidated guidelines.
Verify that corporate borrowers meet the tangible net worth (≥₹4 crore) and standard asset classification requirements before issuing CP.
Confirm that CP ratings are current and from approved agencies (CRISIL, ICRA, CARE, FITCH Ratings India Pvt. Ltd. or other RBI-specified agencies) with minimum P-2 equivalent.
Ensure CP maturities are between 7 days and 1 year, and denominations are ₹5 lakh or multiples thereof.
What is the minimum credit rating required for CP issuance?
The minimum credit rating is P-2 from CRISIL or an equivalent rating from ICRA, CARE, FITCH Ratings India Pvt. Ltd., or other RBI-specified agencies.
What is the maturity range for Commercial Paper?
CP can be issued for a minimum of 7 days and a maximum of up to one year from the date of issue, provided the maturity does not exceed the validity of the credit rating.
Who are eligible to issue CP under these guidelines?
Corporates with tangible net worth of at least ₹4 crore, sanctioned working capital limits, and a standard asset classification, as well as primary dealers and all-India financial institutions.
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/84
IDMD.DOD. 14 /11.08.36/2010-11
July 1, 2010
The Chairmen/Chief Executives of
All Scheduled Banks, Primary Dealers
and All-India Financial Institutions
Dear Sir,
Master Circular - Guidelines for Issue of Commercial Paper
As you are aware, Commercial Paper (CP), an unsecured money market instrument issued in the form of a promissory note, was introduced in India in 1990 with a view to enabling highly rated corporate borrowers to diversify their sources of short-term borrowings and provide an additional instrument to the investors. Guidelines for issue of CPs are presently governed by various directives issued by the Reserve Bank of India, as amended from time to time.
2. A Master Circular incorporating all the existing guidelines/instructions/ directives on the subject has been prepared. It may be noted that this Master Circular consolidates and updates all the instructions/guidelines contained in the circulars listed in the Appendix, in so far as they relate to ‘guidelines for issue of CP’. This master circular has been placed on RBI website at www.mastercirculars.rbi.org.in.
Yours faithfully,
(K K Vohra)
Chief General Manager
Encl. As above
Table of Content
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/84 · issued 01 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.
Verify that corporate borrowers meet the tangible net worth (≥₹4 crore) and standard asset classification requirements before issuing CP.
📜 Compliance
Review the master circular to ensure your CP issuance processes align with the consolidated guidelines.
Confirm that CP ratings are current and from approved agencies (CRISIL, ICRA, CARE, FITCH Ratings India Pvt. Ltd. or other RBI-specified agencies) with minimum P-2 equivalent.
Ensure CP maturities are between 7 days and 1 year, and denominations are ₹5 lakh or multiples thereof.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Scheduled banks, Primary dealers, All-India financial institutions, Corporate borrowers issuing CP), your first concrete step on “Master Circular on Commercial Paper Guidelines” is: “Review the master circular to ensure your CP issuance processes align with the consolidated guidelines.” (RBI issued this 01 Jul 2010).
Circular: RBI/2010-11/84 -- Master Circular on Commercial Paper Guidelines
Issued: 01 Jul 2010
Action required: Review the master circular to ensure your CP issuance processes align with the consolidated guidelines.
Action required: Verify that corporate borrowers meet the tangible net worth (≥₹4 crore) and standard asset classification requirements before issuing CP.
Action required: Confirm that CP ratings are current and from approved agencies (CRISIL, ICRA, CARE, FITCH Ratings India Pvt. Ltd. or other RBI-specified agencies) with minimum P-2 equivalent.
Action required: Ensure CP maturities are between 7 days and 1 year, and denominations are ₹5 lakh or multiples thereof.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 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.
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=5850&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.