Deprecated: Creation of dynamic property SimpleLoginLog::$installed_ver is deprecated in /home/site/wwwroot/wp-content/plugins/simple-login-log/simple-login-log.php on line 46
{"id":243568,"date":"2021-02-08T17:30:19","date_gmt":"2021-02-08T12:00:19","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=243568"},"modified":"2021-02-08T16:33:52","modified_gmt":"2021-02-08T11:03:52","slug":"rbi-primary-urban-co-operative-banks-shall-not-provide-or-renew-director-related-loans","status":"publish","type":"post","link":"https:\/\/blog.scconline.gen.in\/post\/2021\/02\/08\/rbi-primary-urban-co-operative-banks-shall-not-provide-or-renew-director-related-loans\/","title":{"rendered":"RBI | Primary (Urban) Co-operative Banks shall not provide or renew director-related loans"},"content":{"rendered":"\n
Tweet<\/a><\/div>\n

The Banking Regulation Act, 1949 has been amended by the Banking Regulation (Amendment) Act, 2020 notified for the Primary (Urban) Co-operative Banks (UCBs<\/span>)<\/strong><\/span> 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.<\/p>\n

Keeping in view the above, the extant directions on the subject issued to UCBs have been reviewed and the revised directions are issued as under.<\/span><\/strong><\/p>\n

\n

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 \u201cdirector-related loans\u201d<\/span>). 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 for the purpose shall include all types of funded \/ working capital limits such as cash credits, overdrafts, credit cards, etc.<\/p>\n<\/blockquote>\n