The Presidents/Chief Executives

All Banks

Dear Sir/ Madam,

Prudential Regulations for Small and Medium Enterprises’ Financing

Please refer to the Prudential Regulation SE R-7 relating to General Reserve Requirement for Small Enterprise (SE) Finance

2. It has been decided that Regulation SE R-7: General Reserve for Small Enterprise Finance shall not apply on financing extended under Prime Minister’s Youth Business Loans (PMYBL) Scheme.

4. Other instructions on the subject remain unchanged.