What changed
RBI issued a master circular consolidating all previous instructions on resource raising for all-India term lending and refinancing institutions up to June 30, 2011. The circular updates the 2010 version and includes norms for umbrella limit instruments like term deposits, bonds, and commercial papers.
What it means for you
For banks and FIs, this circular provides a single reference point for compliance, reducing ambiguity. It ensures uniform regulatory treatment across statutory bodies and limited companies, promoting market discipline and level playing field in bond issuance.
What you must do
- Review the consolidated master circular for updated resource raising norms.
- Ensure compliance with umbrella limit guidelines for term deposits, CDs, CPs, and bonds.
- Submit monthly returns on aggregate resources and bond issuances as per Annex 3 and 4.
- Coordinate with the Standing Committee for bond issuance approvals if required.
Who it affects
Exim Bank, NABARD, NHB, SIDBI, All-India term lending and refinancing institutions
What is the umbrella limit for resource raising?
The aggregate borrowings through term deposits, term money, CDs, CPs, and ICDs must not exceed 100% of net owned funds (NOF) for NABARD, and 150% of NOF for NHB, SIDBI, and EXIM Bank until June 30, 2012.