SPEED POST | RBI/2008-09/420 | | | | RPCD.RRB.BC.No.94/03.05.34/2008-09 | March 26, 2009 | | | The Chairman
All Regional Rural Banks/Sponsor Banks | | | Dear Sir, | | | Valuation of investment in SLR/Approved Securities by
Regional Rural Banks (RRBs) | | | Please refer to our circular RPCD.RRB.BC.No.87/03.05.34/2006-07 dated May 8, 2007 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 2007-08 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 2008-09. Accordingly, RRBs will have the freedom to classify their entire investment portfolio of SLR securities under 'Held to Maturity' for the financial year 2008-09 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. | | | | | Yours faithfully, | | | | | (A.K.Pandey)
General Manager | |