SPEED POST |
RBI/2008-09/420 |
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| RPCD.RRB.BC.No.94/03.05.34/2008-09 |
March 26, 2009 |
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The Chairman
All Regional Rural Banks/Sponsor Banks |
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Dear Sir, |
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Valuation of investment in SLR/Approved Securities by
Regional Rural Banks (RRBs) |
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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. |
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Yours faithfully, |
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(A.K.Pandey)
General Manager |
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