RBI increases loan limit of bank directors to Rs 5 cr from Rs 25 lakh

Said unless sanctioned by board or management committee, banks should not grant loans of Rs 5 crore or more to relatives other than spouse and dependent children of their top brass

The Reserve Bank of India on Friday increased the limit of personal loans given to any director of a bank to Rs 5 crore, from Rs 25 lakh earlier.

The central bank amended the master circular for this, and said unless sanctioned by the board of directors or the management committee, banks should not grant loans and advances aggregating Rs 5 crore and above to any relative other than spouse and dependent children of their own Chairmen/Managing Directors or other Directors.

This also extends to firms in which any relative other than spouse or dependent children is interested as a