HomeCirculars › RBI/2012-13/68

Master Circular on Exposure Norms – July 2012

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/68 · issued 02 Jul 2012 · ~1 min read
Quick answerRBI consolidated all exposure norms for scheduled commercial banks (excluding RRBs) into a single master circular, updating limits for individual/group borrowers, industry sectors, and capital market exposure. Banks must align their credit policies with these updated ceilings and exemptions.

What changed

RBI replaced the July 2011 master circular with a new version incorporating all instructions issued up to June 30, 2012. The circular consolidates existing guidelines on credit exposure limits for individual/group borrowers, industry/sector exposures, and capital market exposure without introducing new policy changes.

What it means for you

Banks now have a single reference document for all exposure norms, reducing ambiguity and ensuring compliance with the latest RBI directives. The circular reinforces existing ceilings and exemptions, requiring banks to review their internal policies and reporting systems to match the consolidated framework.

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), Credit risk management teams, Compliance and audit departments, Board-level investment and risk committees

❓ Common questions

Regulatory timeline

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

Does this master circular introduce new exposure limits?

No, it consolidates existing instructions issued up to June 30, 2012, without changing the substantive limits or exemptions.

Which banks are covered under this circular?

All scheduled commercial banks are covered, except Regional Rural Banks (RRBs).

What should banks do if their current exposures exceed the prescribed limits?

Banks must immediately review and bring exposures within the ceilings specified in the circular, and report any deviations to RBI as per existing guidelines.

📜 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 #1285: DBOD.No.Dir.BC.3/13.03.00/2012-13 — "Master Circular - Exposure Norms" dated July 2, 2012”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/68 DBOD. No.Dir.BC.3/13.03.00/2012-13 July 2, 2012 Ashadha 11, 1934, (Saka) All Scheduled Commercial Banks (excluding RRBs) Dear Sir / Madam Master Circular – Exposure Norms Please refer to the Master Circular DBOD No. Dir. BC. 7/13.03.00/2011-12 dated July 1, 2011 consolidating the instructions / guidelines issued to banks till that date relating to Exposure Norms. The Master Circular has been suitably updated by incorporating the instructions issued up to June 30, 2012 and has also been placed on the RBI website ( http://www.rbi.org.in ). A copy of the Master Circular is enclosed. Yours faithfully (Sudha Damodar) Chief General Manager Encl: as above Master Circular on Exposure Norms CONTENTS Para No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/68 · issued 02 Jul 2012. 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=7373&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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