RPCD.CO.RRB.BC.No.59 /03.05.34 /2010-11 April 11, 2011
All Regional Rural Banks/Sponsor Banks
Investment in SLR Securities by Regional Rural Banks (RRBs)
Please refer to our circular RPCD.RRB.BC.No.68/03.05.34/2008-09 dated April 9, 2010 on the captioned subject.
2. On a review of the issue it has been decided that the exemption granted to RRBs up to financial year 2009-10 from ‘mark to market’ norms in respect of their investment in SLR securities be extended by for three years i.e. for the financial years 2010-11, 2011-12 and 2012-13. Accordingly, RRBs will have the freedom to classify their entire investment portfolio of SLR securities under ‘Held to Maturity’ for the financial years 2010-11, 2011-12 and 2012-13 with valuation on book value basis and amortization of premium, if any, over the remaining life of securities.
3. Please acknowledge receipt to the respective Regional Office.
Chief General Manager