Source: Reserve Bank of India · RBI/2011-12/69 · issued FY 2011-12 · ~2 min read
Quick answerRBI issued a consolidated master circular on prudential norms for classification, valuation, and operation of investment portfolios by all-India term-lending and refinancing institutions (Exim Bank, NABARD, NHB, SIDBI), effective July 1, 2011, updating all prior instructions.
What changed
This master circular consolidates all previous guidelines on investment portfolio norms for FIs up to June 30, 2011, replacing the earlier circular of July 1, 2010. It updates instructions on classification, valuation, and operation of investments, including shifts among categories and valuation of unquoted securities.
What it means for you
FIs must now follow a single, updated reference document for investment portfolio compliance, reducing ambiguity from multiple circulars. The circular reinforces prudential norms like three-category classification (HTM, AFS, HFT) and strict valuation rules, impacting how FIs manage their securities portfolios and report to RBI.
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 align your investment policy with the consolidated master circular, ensuring board approval for investment objectives and delegation of authority.
Update internal control systems to comply with guidelines on broker dealings, audit, and reporting of investment transactions.
Ensure proper classification of all securities into Held to Maturity, Available for Sale, or Held for Trading at acquisition, and follow prescribed shifting rules.
Implement valuation norms for all securities, including unquoted ones, and maintain accurate mark-to-market records.
Who it affects
All-India Financial Institutions: Exim Bank, NABARD, NHB, SIDBI, Investment and treasury departments of these FIs, Compliance and audit teams handling investment portfolios
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this master circular apply to commercial banks?
No, this circular is specifically addressed to all-India term-lending and refinancing institutions (Exim Bank, NABARD, NHB, SIDBI). Banks have separate circulars for investment portfolio norms.
What are the three categories for classifying investments?
Investments must be classified as Held to Maturity (HTM), Available for Sale (AFS), or Held for Trading (HFT) at the time of acquisition, with specific rules for shifting between categories.
Where can I find the full list of previous instructions consolidated in this circular?
The list of circulars containing previous instructions is provided in Annex V of the master circular, which is available on the RBI website.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “Please refer to Master Circular DBOD.No.FID.FIC.3/01.02.00/2011-12 dated July 01, 2011 on the captioned subject.”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1475: DBOD.No.FID.FIC.3/01.02.00/2011-12 — "Master Circular - Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by FIs" dated Jul”
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/69
DBOD.No. FID.FIC.3/01.02.00/2011-12
01 July, 2011
10 Aashadha 1933 (Saka)
The CEOs of the All-India Term Lending and Refinancing Institutions
(Exim Bank, NABARD, NHB and SIDBI)
Dear Sir,
Master Circular – Prudential norms for classification,
valuation and operation of investment portfolio by FIs
Please refer to Master Circular DBOD.No.FID.FIC.3/01.02.00/2010-11 dated July 01, 2010 on the captioned subject. The enclosed Master Circular consolidates and updates all the instructions/guidelines on the subject up to June 30, 2011. The Master Circular has also been placed on the web-site of RBI ( http://www.rbi.org.in ).
2. It may be noted that the instructions contained in circulars listed in the Annex V have been consolidated in this master circular.
Yours faithfully,
(Deepak Singhal)
Chief General Manager-In-Charge
Encls : As above
Master Circular – Prudential Norms For Classification,
Valuation And Operation Of Investment Portfolio By FIs
Purpose
To provide a consolidated set of guidelines on Classification, Valuation and Operation of Investment Portfolio to all-India term-lending and refinancing institutions.
Previous instructions
The list of circulars containing previous instructions on the above subject is given in Annex V .
Application
To all the all-India Financial Institutions viz. Exim Bank, NABARD, NHB and SIDBI.
Structure
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/69 · issued FY 2011-12. 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=6530&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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