RPCD.RRB.BC.No.83/03.05.34/2003-04 May 20, 2004
RBI/2004/209
The Chairman
All Regional Rural Banks/Sponsor Banks
Dear Sir/Madam,
Valuation of investment in SLR/Approved
Securities by RRBs
Please refer to our circulars Nos.RPCD.RRB.BC.48
&66/03.05.34/2002-03 dated 25 November 2002 and 23 January 2003 respectively
on the above subject.
2. The matter has been reviewed
and it has been decided that the exemption granted to RRBs up to the financial
year 2003-04 from 'mark to market' norms in respect of the SLR securities be
extended for one more year i.e. for the financial year 2004-05. Accordingly,
the entire investment portfolio of SLR securities may be classified under 'Held
to maturity' for the financial year 2004-05 with valuation on book value basis
and amortisation of premium, if any, over the remaining life of securities.
3. Please acknowledge receipt.
Yours faithfully,
(G. Srinivasan)
Chief General Manager
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