April 18, 2002

All Commercial Banks
(Except RRBs & LABs)

Dear Sir,

Please refer to paragraphs 2.2 and 2.3 of our Master Circular DBOD.No.Dir.BC.13/13.03.00/2001-2002 dated August 13, 2001 wherein it was advised that banks should limit their commitments by way of unsecured guarantees in such a manner that 20 per cent of a bank's outstanding unsecured guarantees plus the total of its outstanding unsecured advances do not exceed 15 per cent of its total outstanding advances.

2. It has been decided that while reckoning the quantum of unsecured advances and guarantees for applying the above norms, outstanding credit card dues should be excluded from the total of unsecured advances.

Yours faithfully,