Master Circular on Guarantees and Co-acceptances 2025
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2025-26/12 · issued 01 Apr 2025 · ~2 min read
Quick answerRBI has issued a revised Master Circular on Guarantees and Co-acceptances, consolidating all instructions issued up to March 31, 2025. No new guidelines are introduced; this is a pure compilation. Banks must ensure their guarantee policies align with the updated circular.
What changed
The Master Circular has been updated to include all instructions on guarantees and co-acceptances issued by RBI up to March 31, 2025. It replaces the previous version dated April 1, 2024. The circular explicitly states it contains no new instructions or guidelines.
What it means for you
For banks, this is a compliance refresh—no new rules to implement, but the consolidated text must be used as the single reference for guarantee and co-acceptance policies. It reinforces existing norms like the 10-year maturity cap, precautions against fraud, and restrictions on guarantees for NBFC placements. Lenders should review their internal processes to ensure alignment with the consolidated instructions.
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
Replace the old 2024 Master Circular with this 2025 version in your compliance manuals.
Review your bank's guarantee and co-acceptance policies to ensure they match the consolidated instructions.
Train relevant staff (credit, trade finance, legal) on the updated circular, emphasizing no new changes but the need for strict adherence.
Verify that all guarantee maturities comply with the 10-year cap and other maturity guidelines.
Check that guarantees for NBFC or non-bank fund placements follow the existing restrictions.
Who it affects
All Scheduled Commercial Banks (excluding Payment Banks and RRBs), Credit and trade finance departments, Compliance and legal teams, Branch managers handling guarantee issuance
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #65: DOR.STR.REC.06/13.07.010/2025-26 — "Master Circular - Guarantees and Co-Acceptances" dated April 1, 2025”
📜 Read the original circular — full text as issued by RBI
RBI/2025-26/12
DOR.STR.REC.06/13.07.010/2025-26
April 01, 2025
All Scheduled Commercial Banks
(excluding Payment Banks and RRBs)
Dear Sir / Madam
Master Circular - Guarantees and Co-acceptances
Please refer to the Master Circular DOR.STR.REC.2/13.07.010/2024-25 dated April 01, 2024 consolidating the instructions / guidelines issued to banks till March 31, 2024, relating to Guarantees and Co-acceptances. Attached is the revised Master Circular , updated to reflect all instructions issued up to March 31, 2025 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, 2025 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/2025-26/12 · issued 01 Apr 2025. The plain-English explanation above is BankPulse’s own independent summary.
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.
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=12820&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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