Categories: Banking

RBI allows loans up to Rs 5 cr to other banks’ directors

Reserve Bank of India (RBI) has overhauled rules for extending loans to directors of other banks and relatives of directors. As per the amendments, the central bank has allowed banks to extend personal loans up to ₹5 crores to directors of other banks and directors’ relatives other than spouses without board approval. The earlier limit for such loans was ₹25 lakh.

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The regulations apply to directors, including the Chairman/Managing Director, of other banks, any firm in which they are interested as a partner or guarantor, or any company in which they hold substantial interest or is interested as a director or as a guarantor. Personal loans refer to loans given to individuals and consist of consumer credit, education loans, loans given for the creation or enhancement of immovable assets like houses, and loans given for investment in financial assets, such as shares, debentures, etc.

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RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.