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.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
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.
Important takeaways for all competitive exams:
Goa is a small state on the western coast of India, famous for its beaches,…
Every year, people around the world search for words that show what interests them the…
The Hurun Rich List 2025 has once again highlighted India’s dynamic startup and business ecosystem.…
India’s innovation ecosystem has received global recognition as an Indian satellite internet concept emerged as…
India’s fiscal position showed resilience in the current financial year as net direct tax collections…
Recently, the Union Minister informed the Rajya Sabha about the progress and impact of the…