Master Circular DBOD.No.Dir.BC. 4/13.03.00/2012-13, dated 2-7-2012 This Master Circular provides a framework of the rules/regulations/instructions issued to Scheduled Commercial Banks on statutory and other restrictions on loans and advances. Banks should implement these instructions and adopt adequate safeguards in order to ensure that the banking activities undertaken by them are run on sound, prudent and profitable lines.

MASTER CIRCULAR DBOD.BP.BC NO.14/21.04.018/2012-13, DATED 2-7-2012 Please refer to the Master Circular DBOD.BP.BC.No.16/21.04.018/2011-12 dated July 1, 2011 consolidating all operative instructions issued to banks till June 30, 2011 on matters relating to disclosures in the ‘Notes to Accounts’ to the Financial Statements. The Master Circular has now been suitably updated by incorporating instructions issued upto June 30, 2012. The Master Circular has also been placed on the RBI web-site (http://www.rbi.org.in).

MASTER CIRCULAR DNBS (PD) CC NO. 284/03.02.001/2012-13, dated 2-7-2012 As you are aware, in order to have all current instructions on the subject at one place, the Reserve Bank of India issues updated Circulars/notifications. The instructions contained in the Notification No.DNBC.39/DG(H)-77 dated 20th June 1977 updated as on June 30, 2012 is enclosed. The updated notification has also been placed on the RBI web-site (http://www.rbi.org.in).

MASTER CIRCULAR DNBS (PD-MGC) C.C.NO. 13/23.11.001/2012-13, DATED 2-7-2012 Pattern of Investment 4. (i) A mortgage guarantee company shall hold not less than 25% of its total investment portfolio in Central and State Government securities. (ii) The remaining investments may be invested as the Board considers prudent, but with a ceiling of 25% in any one category i.e. listed and rated corporate bonds and debentures or debt oriented mutual fund units, etc. (iii) The Board may fix an appropriate sub-limit for individual investments within each category of instruments as specified in paragraph 3(i) above of these directions.

NOTIFICATION AS AMENDED UP TO JUNE 30, 2012 – MORTGAGE GUARANTEE COMPANIES PRUDENTIAL NORMS (RESERVE BANK) DIRECTIONS, 2008 MASTER CIRCULAR DNBS (PD-MGC) C.C.NO. 12/23.11.001/2012-13, DATED 2-7-2012 As you are aware, in order to have all current instructions on the subject at one place, the Reserve Bank of India issues updated circulars / notifications. The instructions [...]

Master Circular DNBS (PD) CC No.285/03.10.42/2012-13, dated 2-7-2012 – NBFCs were advised to follow certain customer identification procedure for opening of accounts and monitoring transactions of a suspicious nature for the purpose of reporting it to appropriate authority. These ‘Know Your Customer’ guidelines have been revisited in the context of the Recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on Combating Financing of Terrorism (CFT). Detailed guidelines based on the Recommendations of the Financial Action Task Force and the paper issued on Customer Due Diligence (CDD) for NBFCs by the Basel Committee on Banking Supervision, with indicative suggestions wherever considered necessary, have been issued. NBFCs have been advised to ensure that a proper policy framework on ‘Know Your Customer’ and Anti-Money Laundering measures with the approval of the Board is formulated and put in place.

MASTER CIRCULAR DNBS (PD-MGC) C.C.NO. 11/ 23.11.001/2012-13, DATED 2-7-2012 Registration with the Reserve Bank of India – 3. A mortgage guarantee company shall commence the business of providing mortgage guarantee after – (a) obtaining a certificate of registration from the Reserve Bank of India; and (b) having a net owned fund of one hundred crore rupees or such other higher amount, as the Reserve Bank of India may, by notification, specify.

MASTER CIRCULAR DNBS (PD) CC No. 287/03.10.001/2012-13, DATED 2-7-2012 In the statement of Monetary and Credit Policy for the year 2000-2001 announced by our Governor on April 27, 2000 it was indicated, inter alia, that the guidelines for entry of NBFCs into insurance business would be announced. Accordingly, the Bank issued on June 9, 2000 the final guidelines after taking into account the views/suggestions/comments of the market participants as given below. The aspirant NBFCs are advised to make an application along with necessary particulars duly certified by their statutory auditors to the Regional Office of Department of Non-Banking Supervision under whose jurisdiction the registered office of the NBFCs is situated.

Master Circular DNBS (PD) CC No. 288/03.10.001/2012-13, DATED 2-7-2012 As it is evident, the need for good corporate governance has been gaining increased emphasis over the years. Globally, companies are adopting best corporate practices to increase the investors confidence as also that of other stakeholders. Corporate Governance is the key to protecting the interests of the stake-holders in the corporate sector. Its universal applicability has no exception to the Non-Banking Financial Companies (NBFCs) which too are essentially corporate entities. Listed NBFCs which are required to adhere to listing agreement and rules framed by SEBI on Corporate Governance are already required to comply with SEBI prescriptions on Corporate Governance.

Master Circular DNBS (PD) CC No. 280/03.02.001/2012-13, dated 2-7-2012 Matters to be included in the Auditor’s report – The auditor’s report on the accounts of a non-banking financial company shall include a statement on the following matters, namely: -(A) In the case of all Non-Banking Financial Companies I. Whether the company is engaged in the business of non-banking financial institution and whether it has obtained a Certificate of Registration (CoR) from the Bank II. In the case of a company holding CoR issued by the Bank, whether that company is entitled to continue to hold such CoR in terms of its asset/income pattern as on March 31 of the applicable year.