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Master Circular on Guarantees and Co-acceptances 2012

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/69 · issued 02 Jul 2012 · ~1 min read
Quick answerRBI consolidated all guidelines on guarantees and co-acceptances for scheduled commercial banks (excluding RRBs) as of June 30, 2012. The circular updates the 2011 master circular and covers norms, fraud prevention, and risk management for contingent liabilities.

What changed

This master circular updates the previous July 1, 2011 version by incorporating all instructions issued up to June 30, 2012. It consolidates existing guidelines without introducing new policy changes, serving as a single reference document for banks.

What it means for you

Banks must ensure their guarantee and co-acceptance practices align with the consolidated framework, which emphasizes risk sensitivity and fraud prevention. The circular reinforces the importance of managing contingent liabilities as part of overall asset quality assessment.

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 Regional Rural Banks), Bank guarantee and credit departments, Risk management and compliance teams

❓ Common questions

Regulatory timeline

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

Does this circular introduce any new requirements for banks?

No, it consolidates existing instructions up to June 30, 2012, without adding new requirements. Banks should use it as a single reference for all guarantee and co-acceptance guidelines.

Which banks are covered under this master circular?

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

What are the key areas covered in the guidelines?

The circular covers general guidelines, conduct of guarantee business, foreign exchange-related guarantees, restrictions on inter-company deposits and NBFC placements, payment of invoked guarantees, co-acceptance of bills, and precautions for letters of credit.

📜 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 #1282: DBOD.No.Dir.BC.02 /13.03.00/2012-13 — "Master Circular - Guarantees and Co-acceptances" dated July 2, 2012”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/69 DBOD. No. Dir. BC. 02/13.03.00/2012-13 July 2, 2012 11 Ashadha 1934 (Saka) All Scheduled Commercial Banks (excluding RRBs) Dear Sir / Madam Master Circular - Guarantees and Co-acceptances Please refer to the Master Circular DBOD.No.Dir.BC.8/13.03.00/2011-12 dated July 1, 2011 consolidating the instructions / guidelines issued to banks till that date relating to Guarantees and Co-acceptances. 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 CONTENTS Para No
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/69 · issued 02 Jul 2012. 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=7374&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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