RBI Hikes Annual Turnover Targets for PDs Serving Mid-Segment and Retail Investors
Current · Source: Reserve Bank of India · RBI/2013-14/630 · issued 05 Jun 2014 · ~1 min read
Quick answerRBI has raised the minimum annual turnover target for Primary Dealers (PDs) serving mid-segment and retail investors. Bank PDs must now achieve 100% of minimum NOF, while standalone PDs face a 150% target, effective July 2014-June 2015.
The rule, in the simplest words
Primary Dealers (PDs) [companies that buy and sell government bonds] must now do more business with mid-segment [medium-sized] and retail [small] investors.
For bank PDs, the minimum yearly business target is 100% of their Net Owned Funds (NOF) [the money the bank itself owns, not borrowed].
For standalone PDs [PDs that are not part of a bank], the minimum yearly business target is 150% of their NOF.
This rule applies from July 2014 to June 2015, and will be checked every year.
New PDs must also follow this rule from the start.
How it plays out — a real example
A treasury officer in Indore, Priya, works for a bank that is also a Primary Dealer. She knows her bank must now do business worth 100% of its own money (NOF) with mid-segment and retail investors by June 2015. So she starts calling small jewelry shops and local investors to sell them government bonds, making sure her bank meets the new target.
What changed
RBI increased the minimum annual turnover target for PDs dealing with mid-segment and retail investors. For bank PDs, the target is now 100% of minimum prescribed Net Owned Funds (NOF), and for standalone PDs, it is 150% of minimum prescribed NOF. This applies for the period July 2014 to June 2015 and will be reviewed annually.
What it means for you
PDs must step up their business volumes with mid-segment and retail clients to meet the higher turnover thresholds. Bank PDs face a relatively lower target than standalone PDs, reflecting their different capital structures. New PD applicants must also comply with these norms from the start.
What you must do
Review your current mid-segment and retail turnover against the new NOF-linked targets.
Adjust business strategies to ensure you meet the 100% (bank PD) or 150% (standalone PD) target by June 2015.
Incorporate these targets into your annual planning and reporting processes.
If applying for PD authorization, ensure your business plan aligns with these enhanced turnover requirements.
Who it affects
Bank Primary Dealers (PDs), Standalone Primary Dealers (PDs), New entities applying for PD authorization
❓ Common questions
What is the new annual turnover target for bank PDs?
Bank PDs must achieve a minimum annual turnover of 100% of their minimum prescribed Net Owned Funds (NOF) for mid-segment and retail investors.
When does this new target apply?
The target is effective for the period from July 2014 to June 2015 and will be reviewed annually thereafter.
Does this apply to new PD applicants?
Yes, new entities applying for PD authorization must also meet these enhanced turnover norms.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/630
IDMD.PDRD.No. 3404/03.64.000/2013-14
June 5, 2014
All Market participants
Dear Sir/Madam,
Annual Turnover Target on behalf of Mid-segment and Retail investors for Primary Dealers (PDs)
Attention of PDs is invited to our circular IDMD.PCD.9/14.03.05/2011-12 dated August 30, 2011 and para 1.3.7 of Master Circular on Operational Guidelines to PDs dated July 01, 2013 on the captioned subject.
2. It has been decided to enhance the minimum annual target for mid-segment and retail investors to 100 percent of minimum prescribed Net Owned Funds (NOF) for bank PDs and to 150 percent of minimum prescribed NOF for standalone PDs. This minimum annual target will be applicable for the period July 2014-June 2015. This target will be reviewed annually.
3. These norms will also be applicable for new entities applying for PD authorization as per IDMD.PCD.9/14.03.05/2011-12 dated August 30, 2011 and para 1.3.2 of our Master circular on Operational Guidelines to PDs dated July 01, 2013.
Yours faithfully
(Rekha Warriar)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/630 · issued 05 Jun 2014. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Bank Primary Dealers (PDs), Standalone Primary Dealers (PDs), New entities applying for PD authorization), your first concrete step on “RBI Hikes Annual Turnover Targets for PDs Serving Mid-Segment and Retail Investors” is: “Review your current mid-segment and retail turnover against the new NOF-linked targets.” (RBI issued this 05 Jun 2014).
Circular: RBI/2013-14/630 -- RBI Hikes Annual Turnover Targets for PDs Serving Mid-Segment and Retail Investors
Issued: 05 Jun 2014
Action required: Review your current mid-segment and retail turnover against the new NOF-linked targets.
Action required: Adjust business strategies to ensure you meet the 100% (bank PD) or 150% (standalone PD) target by June 2015.
Action required: Incorporate these targets into your annual planning and reporting processes.
Action required: If applying for PD authorization, ensure your business plan aligns with these enhanced turnover requirements.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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
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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=8925&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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