The guarantee provided by State Bank of India (500112.BY) to Tata Motors Ltd.'s (500570.BY) INR42 billion bond issue will continue to be in place, a spokeswoman of the central bank said Monday.

Last month, Tata Motors had raised INR42 billion through an issue of non-convertible debentures guaranteed by State Bank of India, the country's largest bank by assets.

The Reserve Bank of India, in a circular dated May 29, asked banks not to provide guarantees to corporate bonds.

"The SBI didn't interpret our guidelines correctly. The issue is already concluded now and investors have put in their money," the spokeswoman told Dow Jones Newswires.

Under existing guidelines, banks can guarantee only loans extended to companies.

-By Harsh Joshi, Dow Jones Newswires; 91-22-6145-6115; harsh.joshi@dowjones.com