Mumbai: The Reserve Bank of India has revised the threshold of personal loan amount that can be granted to board directors and their families at not more than ₹5 crore. Earlier the threshold of personal loan that can be given to any bank director stood at ₹25 lakh. Personal loans refers to loans given to individuals and consist of consumer credit, education loan, loans given for creation/ enhancement of immovable assets and loans given for investment in financial assets (shares, debentures, etc.). In the past there have been instances of when the existing directors misused their position to grant loans to favour their family members. Case in point is the ICICI bank MD & CEO Chanda Kochhar who is alleged to have misused her official post to grant ₹3250 crore loan to Videocon.

Source: Mint July 23, 2021 12:45 UTC