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RBI/2005-06/175
UBD.PCB.CIR.No.14/13.05.000/05-06
October 6, 2005
The Chief Executive Officers of All Primary (Urban) Co-operative
Banks
Dear Sir / Madam,
Loans and advances to directors, relatives and
firms/concerns in which they are interested-UCBs
Please refer to our circulars UBD.PCB.CIR.50/13.05.00/2002-03
and UBD.BPD.Cir.No.
54/13.05.00/02-03 dated April 29, 2003 and June 24, 2003 respectively, prohibiting
UCBs from extending any loans and advances (both secured and unsecured) to the
directors, their relatives and the firms/concerns/companies in which they are
interested.
2. On reconsideration it has been decided
to exclude the following categories of director related loans from the purview
of the instructions issued vide our circular under reference:
i. regular employee-related loans to staff
directors on the Board of UCBs;
ii. normal loans as applicable to members to
the directors on the Boards of salary earners’ co-operative banks and
iii. normal employee-related loans to Managing Directors of Multi-State
co-operative banks.
3. Please acknowledge receipt of this circular
to the concerned Regional Office.
Yours faithfully,
sd/-
(A.K.Khound)
Chief General Manager
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