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:
In the annals of Indian history, certain leaders shine brightly, leaving an indelible mark on…
Investments through participatory notes (P-notes) in the Indian capital markets reached a staggering Rs 1.5…
In a collaborative effort, HDFC Bank and Atal Innovation Mission, under NITI Aayog, have empowered…
The Reserve Bank of India (RBI) has announced the lifting of restrictions on Bank of…
Following Deepak Parekh's resignation from the post of Chairman, HDFC Life Insurance appointed Keki Mistry…
Setu, a leading Indian fintech company and part of the Pine Labs Group, has unveiled…