ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    What is the necessary requirement for granting loans and

    advances to relatives of Directors?
    A Approval from the Reserve Bank of India Correct Answer Incorrect Answer
    B Approval from the Department of Banking Regulation Correct Answer Incorrect Answer
    C Approval from the Board of Directors Correct Answer Incorrect Answer
    D Approval from the shareholders of the banking company Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    As per RBI Circular loans and advances to relatives of the bank's Chairman/Managing Director or other Directors, as well as Directors of other banks and their relatives, Directors of Scheduled Co-operative Banks and their relatives, and Directors of Subsidiaries/Trustees of Mutual Funds/Venture Capital Funds set up by the financing banks or other banks, require prior approval from the Board.

    Practice Next
    More Alternate Sources of Finance Questions

    Relevant for Exams:

    ask-question