Source: Reserve Bank of India · RBI/2024-25/03 · issued 01 Apr 2024 · ~1 min read
Quick answerRBI consolidated all existing instructions on guarantees and co-acceptances up to March 31, 2024, without adding new rules. Banks must continue following norms on unsecured advances, fraud prevention, and maturity limits (normally not exceeding 10 years, but longer maturities allowed for project loans exceeding 10 years with board-approved policy). No immediate action needed.
What changed
This Master Circular updates the previous version from April 1, 2023, by incorporating all instructions issued up to March 31, 2024. It explicitly states that no new guidelines have been introduced; it is purely a consolidation exercise.
What it means for you
Banks can rely on this circular as a single reference for all existing guarantee and co-acceptance rules. The unchanged framework means existing compliance practices remain valid, but banks should update their internal manuals to reference this latest circular.
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 policy documents to reference this Master Circular (DOR.STR.REC.2/13.07.010/2024-25).
Ensure guarantee portfolios comply with the 10-year maturity cap (normally not exceeding 10 years, but longer maturities allowed for project loans exceeding 10 years with board-approved policy) and other existing norms.
Reinforce fraud prevention measures as per Ghosh Committee recommendations and internal control systems.
Verify that guarantees for NBFCs or non-bank entities adhere to the restrictions in para 2.4.
Who it affects
All Scheduled Commercial Banks (excluding Payments Banks and RRBs), Bank guarantee and credit departments, Compliance and risk management teams
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 circular introduce any new requirements for issuing guarantees?
No, this is a consolidation of all existing instructions up to March 31, 2024, with no new guidelines added.
What is the maximum maturity allowed for a bank guarantee?
Bank guarantees should normally not exceed 10 years, though longer maturities may be considered for project loans exceeding 10 years, subject to board-approved policy.
Which banks are excluded from this circular?
Payments Banks and Regional Rural Banks (RRBs) are not covered by this Master Circular.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “Please refer to the Master Circular DOR.STR.REC.2/13.07.010/2024-25 dated April 01, 2024 consolidating the instructions”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #130: DOR.STR.REC.2/13.07.010/2024-25 — "Master Circular - Guarantees and Co-acceptances" dated April 1, 2024”
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/03
DOR.STR.REC.2/13.07.010/2024-25
April 1, 2024
All Scheduled Commercial Banks
(excluding Payments Banks and RRBs)
Dear Sir / Madam
Master Circular - Guarantees and Co-acceptances
Please refer to the Master Circular DOR. STR. REC.5/13.07.010/2023-24 dated April 1, 2023 consolidating the instructions / guidelines issued to banks till March 31, 2023, relating to Guarantees and Co-acceptances. Attached is the revised Master Circular , updated to reflect all instructions issued upto March 31, 2024 on the above matter, as listed in the Annex 2 . It may be noted that this Master Circular only consolidates all instructions on the above matter issued up to March 31, 2024 and does not contain any new instructions/guidelines.
Yours faithfully
(Vaibhav Chaturvedi)
Chief General Manager
CONTENTS
Para No
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/03 · issued 01 Apr 2024. 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=12644&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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