Home › Circulars › RBI/2013-14/66

Master Circular on Guarantees and Co-acceptances

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2013-14/66 · issued 01 Jul 2013 · ~2 min read

Quick answerRBI consolidated all guidelines on guarantees and co-acceptances into a single master circular, effective July 1, 2013. Banks must follow updated norms on issuance, fraud prevention, and payment of invoked guarantees.

What changed

RBI replaced the July 2, 2012 master circular with an updated version incorporating instructions issued up to June 30, 2013. The circular consolidates all existing guidelines on guarantees, co-acceptances, and letters of credit into one document.

What it means for you

Banks now have a single reference for all guarantee-related regulations, reducing ambiguity. The circular reinforces the need for robust internal controls and fraud prevention measures, especially for guarantees on behalf of directors and brokers. It also reiterates restrictions on guarantees for inter-company deposits and NBFC placements.

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 update internal policies on guarantee issuance to align with the master circular.
Ensure all guarantee-related staff are trained on the consolidated guidelines, especially fraud prevention measures.
Verify compliance with restrictions on guarantees for inter-company deposits and NBFC placements.
Strengthen internal control systems as per Ghosh Committee recommendations.
Update documentation for guarantees, letters of credit, and co-acceptances to match the model forms in the annex.

Who it affects

All Scheduled Commercial Banks (excluding RRBs), Bank guarantee and credit departments, Risk management and compliance teams, Branches handling trade finance and letters of credit

❓ Common questions

Regulatory timeline

Stated effective date effective July 1, 2013
Decoded by BankPulse 2026-06-18 14:42 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST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 circular apply to Regional Rural Banks?

No, the master circular explicitly excludes Regional Rural Banks (RRBs). It applies only to all other Scheduled Commercial Banks.

What are the key restrictions on guarantees for inter-company deposits?

Banks are restricted from issuing guarantees for inter-company deposits or loans, and also for placement of funds with NBFCs, as detailed in sections 2.4.1 and 2.4.2 of the circular.

What should banks do if a guarantee is invoked?

Banks must make payment promptly upon invocation, as per the terms of the guarantee. The circular provides specific guidelines on payment of invoked guarantees in section 2.5.

📜 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 #1095: DBOD.No.Dir.BC.12/13.03.00/2013-14 — "Master Circular - Guarantees and Co-acceptances" dated July 1, 2013”

📜 Read the original circular — full text as issued by RBI

RBI/2013-14/66
 DBOD. No.Dir.BC.12/13.03.00/2013-14
 July 1, 2013
 10 Ashadha 1935 (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.2/13.03.00/2012-13 dated July 2, 2012 consolidating the instructions / guidelines issued to banks till June 30, 2012, relating to Guarantees and Co-acceptances. The Master Circular has been suitably updated by incorporating the instructions issued up to June 30, 2013 and has also been placed on the RBI website ( http://www.rbi.org.in ). A copy of the Master Circular is enclosed.
 Yours faithfully
 ( Prakash Chandra Sahoo )
 Chief General Manager
 Encl: as above
 Master Circular - Guarantees and Co-acceptances 
 CONTENTS 
 Para No

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/66 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.

🧰 Tools — save, print, templates & related

Most relevant forTrade Finance / Forex Operations Compliance Team Risk Management Corporate / Wholesale Banking RM Legal / Documentation & Recovery-Legal Branch Manager — PSU / Co-op / RRB (sanctioning powers)

🛠 Banker’s toolkit — checklists & reply templates →

Related circulars · Department of Regulation

SFB Pillar 3 Disclosure Norms Aligned with Basel UCB Deposit Rate Disclosure & Uniformity Rules Updated LAB Deposit Rate Disclosure & Uniformity Rules Tightened Payments Banks: Interest Rates Must Match Disclosed Schedule RBI Updates Bulk Deposit Rate Rules and Disclosure Timing

Browse all departments →

💬 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=8129&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.