DBD.No.BP.BC.119/21.01.002/98

December 28, 1998
Paush 07, 1920 (Saka)

All Commercial Banks
(excluding RRBs)

Dear Sir,

MONETARY & CREDIT POLICY MEASURES - CAPITAL ADEQUACY RATIO - RISK WEIGHT ON BANK'S INVESTMENTS BONDS/SECURITIES ISSUED BY FINANCIAL INSTITUTIONS

Please refer to paragraph 2(c) of our circular DBOD.No.BP.BC.103/21.01.002/98 dated October 31, 1998 on the captiaoned subject.

2. It has been decided to include "Housing and Urban development Corporation Ltd. (HUDC)" in the list of All India Financial Institutions (ALFls) given in the Annexure I to the above mentioned circular, whose bonds and debentures would qualify for risk weight of 20% for capital adequacy ratio of banks.

3. Please acknowledge receipt.

Yours faithfully,

(C.R. Muralidharan)

General Manager