Please refer to Prudential Regulation M-2 for Corporate / Commercial Banking as amended vide BPRD Circular Letter No. 07 dated March 09, 2009.

2. It has been decided to substitute the paragraph (e) of Prudential Regulation M-2 with the following:

“(e) Banks / DFIs shall not allow personal accounts to be used for business purposes except proprietorships, small businesses and professions where constituent documents are not available and the banks / DFIs are satisfied with KYC profile of the account holder, purpose of relationship and expected turnover of the account keeping in view financial status & nature of business of that customer.”

3. Please acknowledge receipt.