The Reserve Bank of India has extended the time given to banks to treat advances to equity-oriented mutual funds as capital market exposure by three more months — till December 13. By then, banks would also have to comply with the norms that consider payment commitments made by them to stock exchanges to facilitate transactions by mutual funds within the limit of their capital market exposure.

“On a review, it has been decided to extend the transition period to comply with the requirements by another three months, that is, up to December 13,” the RBI said in a notification.

The guideline, which would be effective from December 13, says finance extended by banks to equity-oriented mutual funds would form part of banks’ capital market exposure.