RBI Master Circular on FI Investment Portfolio Norms (2013)
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/79 · issued 01 Jul 2013 · ~2 min read
Quick answerRBI issued a consolidated master circular on prudential norms for classification, valuation, and operation of investment portfolios by all-India term-lending and refinancing institutions (Exim Bank, NABARD, NHB, SIDBI), effective July 1, 2013, replacing the 2012 circular.
What changed
This master circular consolidates all previous instructions on classification, valuation, and operation of investment portfolios for FIs up to June 30, 2013, superseding the July 2, 2012 circular. It updates guidelines on investment policy, internal controls, classification into HTM, AFS, HFT categories, valuation norms, and repo accounting.
What it means for you
FIs must align their investment portfolio practices with the consolidated norms, ensuring proper classification at acquisition, adherence to valuation rules, and robust internal controls. The circular reinforces RBI's focus on transparency and risk management in FI securities transactions, impacting how these institutions manage their investment books.
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 your FI's investment policy to align with the consolidated master circular's objectives and procedures.
Ensure all investment transactions are classified correctly into Held to Maturity, Available for Sale, or Held for Trading categories at acquisition.
Strengthen internal control systems, including audit, review, and reporting of investment transactions, as per the circular.
Implement proper valuation methods for both quoted and unquoted securities as specified in the circular.
Update repo accounting practices to comply with the circular's guidelines on coupon, interest income/expenditure, and mark-to-market.
Who it affects
Exim Bank, NABARD, NHB, SIDBI, All-India term-lending and refinancing institutions
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 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 master circular apply to commercial banks?
No, this circular specifically applies to all-India term-lending and refinancing institutions (Exim Bank, NABARD, NHB, SIDBI). Commercial banks have separate guidelines.
What are the three categories for investment classification?
The three categories are Held to Maturity (HTM), Available for Sale (AFS), and Held for Trading (HFT). Classification must be decided at the time of acquisition.
What is the effective date of this master circular?
The master circular is dated July 1, 2013, and consolidates instructions up to June 30, 2013. It replaces the previous master circular dated July 2, 2012.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1103: DBOD.No.FID.FIC.3/01.02.00/2013-14 — "Master Circular - Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by FIs" dated Jul”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/79
DBOD.No.FID.FIC.3/01.02.00/2013-14
July 1, 2013
The CEOs of the
All-India Term Lending and Refinancing Institutions
(Exim Bank, NABARD, NHB and SIDBI)
Dear Sir,
Master Circular - Prudential Norms for Classification,
Valuation and Operation of Investment Portfolio by FIs
Please refer to Master Circular DBOD.No.FID.FIC.3/01.02.00/2012-13 dated July 02, 2012 on the captioned subject. The enclosed Master Circular consolidates and updates all the instructions / guidelines on the subject up to June 30, 2013. The Master Circular has also been placed on the web-site of RBI ( http://www.rbi.org.in ).
2. It may be noted that the instructions contained in circulars listed in the Annex VIII have been consolidated in this master circular.
Yours faithfully,
(Rajesh Verma)
Chief General Manager
Master Circular - Prudential Norms for Classification,
Valuation and Operation of Investment Portfolio by FIs
Purpose
To provide a consolidated set of guidelines on Classification, Valuation and Operation of Investment Portfolio to all-India term-lending and refinancing institutions.
Previous instructions
The list of circulars containing previous instructions on the above subject is given in Annex VIII .
Application
To all the all-India Financial Institutions viz. Exim Bank, NABARD, NHB and SIDBI.
Structure
1
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/79 · 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=8181&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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