DBOD.No. IBS.1929/23.67.001/97-98

March 14, 1998

Phalguna 23, 1919 (Saka)

The Chief Executives of the Banks authorised to Import Gold

Dear Sir,

Import of Gold

Please refer to the RBI circular AD (G.P. Series) Circular No. 7 dated 6.3.1998. Gold borrowed from abroad in terms of para 2(1) of the above mentioned circular will form part of the bank's demand and time liabilities and will therefore be subject to Cash Reserve Ratio and Statutory Liquidity Ratio.

Yours faithfully,

(Devaki Muthukrishnan)

General Manager