What changed
This master circular consolidates all previous instructions on resource raising for all-India term lending and refinancing institutions up to June 30, 2010, replacing the July 1, 2009 version. It updates norms for instruments like term deposits, commercial papers, certificates of deposit, and bonds, and includes a standing committee for faster bond issuance approvals.
What it means for you
For Exim Bank, NABARD, NHB, and SIDBI, this circular provides a single reference point for compliance, reducing ambiguity. It ensures uniform regulatory treatment across these FIs, facilitating smoother market access for funding and supporting their sectoral credit objectives.
What you must do
- Review the consolidated master circular to ensure all resource raising activities comply with updated norms.
- Submit required returns (e.g., monthly consolidated return on resources raised, bond issuance details) as per annexes.
- For bond issuances, coordinate with RBI's Standing Committee by providing full details (amount, purpose, features) for timely approval.
- Update internal policies and training materials to reflect the consolidated guidelines.
Who it affects
Exim Bank, NABARD, NHB, SIDBI, All-India term lending and refinancing institutions
What is the 'umbrella limit' mentioned in the circular?
The umbrella limit refers to the aggregate ceiling for resource raising through instruments like term deposits, term money borrowings, certificates of deposit, commercial papers, and inter-corporate deposits, as specified in the master circular.
Does this circular apply to commercial banks?
No, this circular specifically applies to all-India term lending and refinancing institutions: Exim Bank, NABARD, NHB, and SIDBI. Commercial banks have separate regulatory frameworks.
How does the Standing Committee for bond issuance work?
RBI constituted a Standing Committee to expedite bond issuance approvals. Meetings are convened on the same or next day of receiving a request from an FI, which must provide details like amount, manner, and purpose of the issue.