Home › Circulars › RBI/2013-14/293

RBI Eases Maturity Norm for AD-I Bank FC Borrowings Till Nov 30

Current · Source: Reserve Bank of India · RBI/2013-14/293 · issued 25 Sep 2013 · ~2 min read
Quick answerRBI has temporarily lowered the minimum maturity on overseas borrowings beyond 50% of Tier I capital from three years to one year, but only for swaps availed on or before November 30, 2013. After that date, the three-year floor returns.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Mumbai, Priya, sees her bank needs foreign cash quickly to meet urgent loan demands. She checks the new rule and arranges a 1-year foreign borrowing of 60% of Tier I capital on November 15, 2013, swapping it with RBI. This gives her bank the funds it needs without the usual 3-year wait, but she knows she must finish before the November 30 deadline or face the longer term again.

What changed

Earlier, AD Category-I banks borrowing beyond 50% of unimpaired Tier I capital had to maintain a minimum maturity of three years. Now, for borrowings made on or before November 30, 2013, the minimum maturity is reduced to one year if the bank intends to use the RBI swap facility. Post-November 30, the three-year minimum maturity requirement will apply again.

What it means for you

This gives banks a short window to raise short-term foreign currency funds and swap them with RBI, easing immediate liquidity pressures. However, the temporary relaxation is time-bound, so banks must plan their funding strategies accordingly. After November 30, the stricter three-year maturity norm will be reinstated, limiting flexibility for short-term FC borrowing beyond the Tier I threshold.

What you must do

Who it affects

AD Category-I banks, Treasury and ALM desks of banks, Banks planning overseas foreign currency borrowings

❓ Common questions

Does this circular apply to all foreign currency borrowings by AD-I banks?

No, it only applies to borrowings that exceed 50% of the bank's unimpaired Tier I capital. Borrowings within that limit are not affected by this circular.

What happens if we borrow after November 30, 2013?

After November 30, 2013, any foreign currency borrowing beyond 50% of Tier I capital must have a minimum maturity of three years, as per the earlier circular.

Is the one-year maturity only for borrowings swapped with RBI?

Yes, the circular specifically lowers the minimum maturity to one year for borrowings made on or before November 30, 2013, for the purpose of availing the swap facility from RBI.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/293 A.P. (DIR Series) Circular No. 54 September 25, 2013 To, All Category - I Authorised Dealer Banks Madam / Sir, Overseas Foreign Currency Borrowings by Authorised Dealer Banks – Enhancement of limit Attention of Authorised Dealer Category - I (AD Category – I) banks is invited to A. P. (DIR Series) Circular No. 40 dated September 10, 2013 , in terms of which AD Category I banks were allowed to borrow beyond 50 per cent of their unimpaired Tier I capital subject, inter alia, to the condition that the borrowing would have a minimum maturity of three years. 2. On a review, it has been decided to lower the requirement of minimum maturity from three years to one year for the aforesaid borrowings made on or before November 30, 2013 for the purpose of availing of the Swap facility from the Reserve Bank of India. It may be noted that after the said date, foreign currency borrowing by AD Category I banks beyond 50 per cent of their Tier I Capital shall have to be of a minimum maturity of three years. 3. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully (Rudra Narayan Kar) Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/293 · issued 25 Sep 2013. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCorporate / Wholesale Banking RMCompliance TeamRisk ManagementSenior Management / BoardInternal Audit
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Foreign Exchange (FEMA)
RBI raises cash carry limit for travellers to Rs 7,500Rupee Value of Special Currency Basket Revised to Rs.60.897378ECB Policy Liberalised: Cost Ceilings Removed, NBFCs & Realty Get BoostECB: Integrated Township Exemption Removed, Cost Ceilings TightenedRBI Delegates Bank Guarantee Powers for Foreign Airlines to AD Banks
Browse all departments →
Who does what — compliance checklist
💻 IT / Systems
  • Identify any planned foreign currency borrowings beyond 50% of Tier I capital that could benefit from the one-year maturity window before November 30, 2013.
  • Review your bank's Tier I capital position and foreign currency funding needs to decide whether to use this temporary window.
📜 Compliance
  • Ensure all such borrowings intended for RBI swap are executed and documented on or before the deadline to avail the relaxed maturity.
  • Prepare for the reversion to three-year minimum maturity for any such borrowings after November 30, 2013.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (AD Category-I banks, Treasury and ALM desks of banks, Banks planning overseas foreign currency borrowings), your first concrete step on “RBI Eases Maturity Norm for AD-I Bank FC Borrowings Till Nov 30” is: “Identify any planned foreign currency borrowings beyond 50% of Tier I capital that could benefit from the one-year maturity window before November 30, 2013.” (RBI issued this 25 Sep 2013).

  1. Circular: RBI/2013-14/293 -- RBI Eases Maturity Norm for AD-I Bank FC Borrowings Till Nov 30
  2. Issued: 25 Sep 2013
  3. Action required: Identify any planned foreign currency borrowings beyond 50% of Tier I capital that could benefit from the one-year maturity window before November 30, 2013.
  4. Action required: Ensure all such borrowings intended for RBI swap are executed and documented on or before the deadline to avail the relaxed maturity.
  5. Action required: Review your bank's Tier I capital position and foreign currency funding needs to decide whether to use this temporary window.
  6. Action required: Prepare for the reversion to three-year minimum maturity for any such borrowings after November 30, 2013.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
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=8466&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—