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    Question

    As per RBI’s recent directive, up to Rs.

    ___________ loan, the banks can approve without the board’s approval?
    A 1 crore Correct Answer Incorrect Answer
    B 2 crore Correct Answer Incorrect Answer
    C 3 crore Correct Answer Incorrect Answer
    D 5 crore Correct Answer Incorrect Answer
    E 10 crore Correct Answer Incorrect Answer

    Solution

    RBI recently said banks without their boards’ approval can sanction personal loans up to Rs 5 crore to directors of other banks. The earlier limit was Rs 25 lakh. Unless sanctioned by the board of directors/ management committee, banks should not grant loans and advances aggregating Rs 5 crore and above to any relative other than spouse and minor/ dependent children of their own Chairmen/ Managing Directors or other directors.

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