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Master Circular on Loan & Advance Restrictions 2013

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/76 · issued 01 Jul 2013 · ~2 min read
Quick answerRBI consolidated all statutory and regulatory restrictions on loans and advances for scheduled commercial banks (excluding RRBs) as of June 30, 2013. This master circular updates the previous 2012 version with instructions issued up to June 2013, covering limits on director loans, share-backed advances, and sector-specific caps.

What changed

This is an annual consolidation replacing the July 2, 2012 master circular. It incorporates all instructions issued between July 1, 2012 and June 30, 2013. The structure and key restrictions remain largely unchanged, but the circular now includes updated annexes and references to newer guidelines like those on project finance and gold loans.

What it means for you

Banks must ensure their lending policies comply with the consolidated restrictions, especially on advances to directors, relatives, and against shares or gold. The circular reinforces existing caps and prohibitions, so lenders should review their internal guidelines to avoid regulatory breaches. It also serves as a single reference point for compliance audits.

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 and compliance departments, Loan officers sanctioning advances to directors, relatives, or against shares/gold, Banks with exposure to real estate, NBFCs, or sensitive commodities

❓ 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 restrictions not present in the 2012 version?

No, this is a consolidation of existing instructions. It updates the previous master circular by incorporating guidelines issued up to June 30, 2013, but does not introduce new restrictions on its own.

Are Regional Rural Banks (RRBs) covered by this master circular?

No, the circular explicitly excludes RRBs. It applies only to all scheduled commercial banks.

Where can I find the detailed list of restricted activities?

The circular's table of contents lists 24 specific restrictions under statutory, regulatory, and other categories, including advances against bank's own shares, to directors, and against sensitive commodities. The full text is available on the RBI website.

📜 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 #1097: DBOD.No.Dir.BC.14/13.03.00/2013-14 — "Master Circular - Loans and Advances - Statutory and Other Restrictions" dated July 1, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/76 DBOD.No.Dir.BC.14/13.03.00/2013-14 July 1, 2013 Ashadha 10, 1935 (Saka) All Scheduled Commercial Banks (excluding RRBs) Dear Sir / Madam Master Circular- Loans and Advances – Statutory and Other Restrictions Please refer to the Master Circular DBOD.No.Dir.BC.4/13.03.00/2012-13 dated July 2, 2012 consolidating the instructions/guidelines issued to banks till June 30, 2012 relating to statutory and other restrictions on Loans and Advances. The Master Circular has been suitably updated by incorporating the instructions issued up to June 30, 2013 and has 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 on Loans and Advances - Statutory and Other Restrictions CONTENTS Para No
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/76 · issued 01 Jul 2013. 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=8135&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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