| Date: |
13-12-2002
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| Notification No: |
RBI Notification No 47/2002
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| Issuing Authority: |
RBI
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| Type: |
Notification
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| File No: |
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| Subject: |
Limit of Unsecured Guarantees and Advances
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|
Limit of Unsecured Guarantees and Advances
DBOD.
No. BP. BC. 47 - 21.04.141- dated 13th December 2002
Please refer to paragraph 2.2 of our master
circular DBOD. No. Dir. BC.07/ 13.03.00/ 2002-03 dated July 26, 2002, in terms
of which banks are required to limit their commitments by way of unsecured
guarantees in such a manner that 20 per cent of a bank�s outstanding unsecured
guarantees together with its total of outstanding unsecured advances should not
exceed 15 per cent of its total outstanding advances. However, certain types of
unsecured advances as indicated in paragraph 2.3 of the master circular referred
to above are excluded from the total of unsecured advances while applying the
above norm.
2. It has been decided that unsecured advances
granted by the branches of foreign banks in India, which are backed by the
guarantees of their overseas branches, may not be taken into account for the
purpose of computing the limit on unsecured guarantees and advances.
3.
Please acknowledge receipt.
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