RBI/2010-11/ 543
DBOD. Dir.BC. 96 /13.03.00/2010-11
May 25, 2011
All Scheduled Commercial banks
(Excluding RRBs)
Dear Sir / Madam
Finance for and Loans/Advances against IDRs
In terms of Foreign Exchange Department
circular A.P (DIR Series) Circular No.5
dated July 22, 2009, eligible companies resident outside India have been
permitted to issue Indian Depository Receipts (IDRs) through a domestic
depository, subject to terms and conditions indicated therein.
- The matter regarding extending of finance for subscription to the IDRs and
loans thereagainst has been examined. It has been decided that no bank should
grant any loan/advance for subscription to IDRs. Further, no bank should grant
any loan/advance against security/collateral of IDRs issued in India.
Yours faithfully
(B. Mahapatra)
Chief General Manager-in-Charge