Investment in SLR Securities by Regional Rural Banks (RRBs)
April 9, 2010
All Regional Rural Banks/Sponsor Banks
Investment in SLR Securities by
Regional Rural Banks (RRBs)
Please refer to our circular RPCD.RRB.BC.No.94/03.05.34/2008-09 dated March 26, 2009 on the above subject.
2. On a review of the issue it has been decided that the exemption granted to RRBs up to the financial year 2008-09 from 'mark to market' norms in respect of their investments in SLR securities be extended by one more year i.e. for the financial year 2009-10. Accordingly, RRBs will have the freedom to classify their entire investment portfolio of SLR securities under 'Held to Maturity' for the financial year 2009-10 with valuation on book value basis and amortisation of premium, if any, over the remaining life of securities.
3. Please acknowledge receipt to the respective Regional Office.