{"id":377,"date":"2021-02-06T08:04:36","date_gmt":"2021-02-06T08:04:36","guid":{"rendered":"https:\/\/rvkassociates.com\/blog\/?p=377"},"modified":"2021-02-18T11:22:49","modified_gmt":"2021-02-18T11:22:49","slug":"rbi-2020-21-89-notification-loans-and-advances-to-directors-their-relatives-and-firms-concerns-in-which-they-areinterested","status":"publish","type":"post","link":"https:\/\/rvks.in\/blogs\/rbi-2020-21-89-notification-loans-and-advances-to-directors-their-relatives-and-firms-concerns-in-which-they-areinterested\/","title":{"rendered":"RBI , 2020-21 , Notification , Loans and advances to directors, their relatives, and firms \/ concerns in which they are interested"},"content":{"rendered":"\n<p class=\"has-text-align-right\">February 5, 2021<\/p>\n\n\n\n<p>The Managing Director \/ Chief Executive Officer<br>All Primary (Urban) Co-operative Banks<\/p>\n\n\n\n<p>Dear Sir \/ Madam,<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>Loans and advances to directors, their relatives, and firms \/ concerns in which they are interested<\/strong><\/p>\n\n\n\n<ol class=\"is-style-none wp-block-list\"><li><strong>1.<\/strong>  Please refer to our <strong>circular BPD.Cir.50\/13.05.00\/2002-03 dated April 29, 2003<\/strong> on the captioned subject and subsequent instructions issued in this regard.<\/li><\/ol>\n\n\n\n<ol start=\"2\" class=\"is-style-none wp-block-list\"><li><strong>2.<\/strong>  The Banking Regulation Act, 1949 (\u201cthe Act\u201d) has been amended by the Banking Regulation (Amendment) Act, 2020 notified for the Primary (Urban) Co-operative Banks (UCBs) on September 29, 2020 and deemed to have been effective from June 29, 2020. Consequently, section 20 of the principal Act has become applicable to UCBs. Keeping in view the above, the<br>extant directions on the subject issued to UCBs have been reviewed and the revised directions are issued as under.<\/li><\/ol>\n\n\n\n<ol start=\"3\" class=\"is-style-none wp-block-list\"><li><strong>3.<\/strong>  UCBs shall not make, provide or renew any loans and advances or extend any other financial accommodation to or on behalf of their directors or their relatives, or to the firms \/ companies \/ concerns in which the directors or their relatives are interested (collectively called as \u201c<strong>director related loans<\/strong>\u201d). Further, the directors or their relatives or the firms \/ companies \/ concerns in which the directors or their relatives are interested shall also not stand as surety\/guarantor to the loans and advances or any other financial accommodation sanctioned by UCBs. \u2018Advances\u2019<br>for the purpose shall include all types of funded \/ working capital limits such as cash credits, overdrafts, credit cards, etc.<\/li><\/ol>\n\n\n\n<p><strong>Read more&#8230;.<\/strong><\/p>\n\n\n\n<p><strong>Click below&#8230;.<\/strong><\/p>\n\n\n\n<p><a href=\"http:\/\/bit.ly\/Rbi-Loans-and-advances-to-directors-their-relatives-and-firms-concerns-in-which-they-are-interested\">http:\/\/bit.ly\/Rbi-Loans-and-advances-to-directors-their-relatives-and-firms-concerns-in-which-they-are-interested<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>February 5, 2021 The Managing Director \/ Chief Executive OfficerAll Primary (Urban) Co-operative Banks Dear Sir \/ Madam, Loans and advances to directors, their relatives, and firms \/ concerns in which they are interested 1. Please refer to our circular BPD.Cir.50\/13.05.00\/2002-03 dated April 29, 2003 on the captioned subject and subsequent instructions issued in this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":357,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,14],"tags":[34],"class_list":["post-377","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-notifications","category-rbi","tag-rbi"],"_links":{"self":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/comments?post=377"}],"version-history":[{"count":5,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/377\/revisions"}],"predecessor-version":[{"id":566,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/377\/revisions\/566"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media\/357"}],"wp:attachment":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media?parent=377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/categories?post=377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/tags?post=377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}