HomeCirculars › RBI/2011-12/239

IPCs for Capital Market: Guidelines Extended Till Dec 31, 2011

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/239 · issued 31 Oct 2011 · ~1 min read
Quick answerRBI extended the existing risk mitigation measures for banks issuing Irrevocable Payment Commitments (IPCs) to stock exchanges on behalf of Mutual Funds and FIIs by two months, until December 31, 2011.

What changed

The earlier circular (DBOD.Dir.BC.46/13.03.00/2010-11 dated September 30, 2010) had set a transitionary arrangement for IPCs that was to expire on October 31, 2011. RBI has now extended that arrangement by two months, keeping all existing guidelines in force until December 31, 2011.

What it means for you

Banks can continue issuing IPCs to stock exchanges for Mutual Funds and FIIs under the same risk mitigation framework for two more months. This gives banks and market participants additional time to adjust to any future changes in capital market exposure norms.

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 Scheduled Commercial Banks (excluding RRBs), Mutual Funds, Foreign Institutional Investors (FIIs), Stock Exchanges

❓ Common questions

Regulatory timeline

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

What is an Irrevocable Payment Commitment (IPC)?

An IPC is a bank's guarantee to a stock exchange that payment will be made for securities transactions, typically used by Mutual Funds and FIIs to settle trades.

Why did RBI extend the IPC guidelines?

The extension provides a transitionary period for banks and market participants to continue using the existing risk mitigation framework while RBI reviews or finalizes permanent norms.

Does this circular change any other rules for capital market exposure?

No, this circular only extends the timeline for existing IPC guidelines; no other capital market exposure rules are modified.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1423: DBOD.Dir.BC.43/13.03.00/2011-12 — "Banks' Exposure to Capital Market - Issue of Irrevocable Payment Commitments (IPCs)" dated October 31, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/239 DBOD.Dir.BC. 43 /13.03.00/2011-12 October 31, 2011 All Scheduled Commercial Banks (excluding RRBs) Dear Sir / Madam Banks' Exposure to Capital Market - Issue of Irrevocable Payment Commitments (IPCs) Please refer to our circular No. DBOD.Dir.BC.46 /13.03.00/2010-11 dated September 30, 2010  in terms of which certain risk mitigation measures were prescribed in the context of banks issuing IPCs to various Stock Exchanges on behalf of Mutual Funds and FIIs, as a transitionary arrangement till October 31, 2011. 2.  We advise that the above mentioned guidelines will continue to be in force for a further period of two months i.e. till December 31, 2011. Yours faithfully, (Vivek Deep) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/239 · issued 31 Oct 2011. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6785&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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