HomeCirculars › RBI/2011-12/245

CRE Loans Now Need Mortgage Disclosure in Ads

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/245 · issued 03 Nov 2011 · ~1 min read
Quick answerRBI extends housing project disclosure rules to commercial real estate. Banks must now require developers to disclose property mortgage to the bank in all pamphlets, brochures, and advertisements for CRE projects, ensuring transparency for buyers and lenders.

What changed

Previously, only housing projects required developers to disclose property mortgage to the bank in public advertisements. Now, the same rule applies mutatis mutandis to all Commercial Real Estate (CRE) projects financed by banks.

What it means for you

Banks lending to CRE projects must now include a clause in loan terms mandating developers to disclose the mortgage in all marketing materials. This reduces information asymmetry for buyers and protects banks' security interests by making encumbrances public.

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

Scheduled Commercial Banks (excluding RRBs), CRE developers and borrowers, Bank credit and monitoring departments

❓ Common questions

Regulatory timeline

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

When did this circular take effect?

The circular was issued on November 3, 2011, and was effective from that date for new CRE financing arrangements.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1422: DBOD.BP.BC.No.45/08.12.015/2011-12 — "Guidelines on Commercial Real Estate (CRE)" dated November 3, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/245 DBOD.BP.BC.No. 45 /08.12.015/2011-12 November 3, 2011 All Scheduled Commercial Banks (excluding RRBs ) Dear Sir, Guidelines on Commercial Real Estate (CRE) Please refer to the circular DBOD.No.Dir.(Hsg).BC.31/08.12.001/2009-10 dated August 27, 2009 on ‘Finance for Housing Projects’. Banks were advised, inter-alia, to stipulate a clause, in the terms and conditions of granting finance to specific housing/development projects, regarding disclosure of mortgage of property to the bank in the Pamphlets / Brochures/ Advertisements etc., which may be published by developer/owner inviting public at large to purchase flats and properties. 2. On a review, it has been decided that the provisions contained therein will be, mutatis-mutandis, applicable to Commercial Real Estate also. Yours faithfully, (Deepak Singhal) Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/245 · issued 03 Nov 2011. 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=6795&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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