Question
According to RBI guidelines, what is the maximum loan
limit per individual against shares, debentures, and bonds?Solution
As per the RBI circular, banks can extend loans to individuals against the security of shares, debentures, and bondswith the following limits: • ₹10 lakh per individual when the securities are held in physical form. • ₹20 lakh per individual when the securities are held in dematerialised form. These limits are intended to ensure prudent lending practices, prevent concentration of risk, and align with the move toward a more secure and transparent demat system for financial securities.
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