Rbi Breather On Ucb Loan Ban

The Reserve Bank of India (RBI) today said the ban on primary (urban) co-operative banks (UCBs) extending loans and advances (both secured and unsecured) to their directors, their relatives and the firms/ concerns/ companies will be effective from October 1, 2003.

The RBI had, on April 29, imposed the ban with immediate effect. The breather comes in the wake of representations by the UCBs to the central bank.

The UCBs have been advised that the existing advances extended prior to October 1 (April 29 earlier) might be allowed to continue upto the date when they were due and that the advances should not be renewed or extended further.

 

The RBI decision on the ban was as per the recommendation of the joint parliamentary committee (JPC) on stock market scam.

The JPC had recommended that