RBI/2009-10/272
DBOD.Dir.BC. 66 /13.03.00/2009-10

December 23, 2009

All Scheduled Commercial Banks
(excluding RRBs)

Dear Sir

Banks' Exposure to Capital Market –Loans extended by banks to Mutual Funds and Issue of Irrevocable Payment Commitments (IPCs)

Please refer to our circular No.DBOD.Dir.BC.139/13.03.00/2009-10 dated June 25, 2009 in terms of which the transition period allowed to banks to comply with the requirements contained in our circular No. DBOD.Dir.BC.57/13.03.00/2007-08 dated December 14, 2007, was extended up to December 31, 2009. On a review, it has been decided to further extend the transition period up to June 30, 2010.

Yours faithfully
(P Vijaya Bhaskar)
Chief General Manager-in-Charge