RBI Revises Personal Loan Limit To Board Directors To 5crore Rupee
Earlier, the limit of personal loan given to any bank director was up to Rs 25 lakh.
New Delhi. The Reserve Bank of India i.e. RBI has made changes in the personal loan limit for the board of directors of banks. Now the board of directors of banks and their families will not be able to get a personal loan of more than Rs 5 crore. Earlier, the limit of personal loan given to any bank director was up to Rs 25 lakh.
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The RBI on Friday issued a circular allowing banks not to give loans of more than Rs 5 crore to their own bank and to any relative with spouse and dependent children of the chairman and managing directors of other banks or other directors. Is.
According to RBI, proposals for loan facilities to borrowers below ₹25 lakh or ₹5 crore may be approved by the appropriate authority, but the matter should be reported to the board.
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In the past, there have been several instances when the incumbent directors misused their position to give loans to their family members. ICICI Bank MD and CEO Chanda Kochhar is accused of misusing her official position to give a loan of ₹3250 crore to Videocon.
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